The base price for the negotiations of wire rod exports from Brazil is the same since early December 2016, a source from a major exporter told SteelOrbis.
He mentioned that although exports of the product were slightly reduced since the 12 percent increase effective December 1, the base price has sustained as part of a strategy that takes into consideration the alternative for selling domestically at higher prices.
Wire rod of the mesh grade remains exported at $580/mt FOB conditions, while for the drawing grade product, the price remains at $600/mt FOB.
In January, Brazilian exports of wire rod increased by 2.1 percent from December to 38,200 mt. The average export price for the mesh grade in January was $400/mt FOB, while the average export price for the drawing grade was $580/mt FOB.
The main destinations of Brazilian wire rod exports in January were South America (22,300 mt at an average price of $421/mt FOB that includes both grades), the EU (10,500 mt at an average of $357/mt FOB), the Caribbean (2,400 mt at an average of $425/mt FOB) and the US (2,300 mt at an average of $580/mt FOB).
The exporters were Gerdau (30,700 mt), ArcelorMittal (6,400 mt) and the Votorantim Group (800 mt).