Brazilian producers are negotiating wire rod for export in a range of $600/mt to $610/mt, FOB conditions, now for the fourth consecutive week.
Most of the Brazilian production of long products use electric arc furnaces, and because power rates are the highest in recent years, profit margins are increasingly slim, sources say. Margins have also been squeezed by the cost of electrodes, resulting in limited export competitiveness to neighboring Latin American countries and to the US, where logistics costs are competitive.
Meanwhile, in the Brazilian domestic market, wire rod of the mesh grade is currently sold at an estimated BRL 3,880/mt ($1,206/mt), ex-works, full taxes except IPI.
USD = BRL 3.215 (November 27)