Brazilian offers for export wire rod to Latin American clients remain based on a reference price range of $460/mt to $470/mt, the same as last week, FOB conditions for the mesh grade product.
Negotiations continue to be based on the exchange of low prices for higher volumes, with stocks available for export still high but starting to decline. Demand from consumers is still low, while steel producers are in the final stages of a process of reducing operations, with the closure of EAF (electric arc furnace) plants, aiming to achieve a 41 percent production pace in relation to their nameplate combined capacities.
According to sources, very few fresh deals are being currently closed, with negative impact expected for shipments during the end of May and more intensively during June.