Now entering the third month of price stability, Brazilian export wire rod of the mesh grade is still being negotiated in a price range of $600/mt to $610/mt, FOB conditions.
Domestic producers remain paying for the highest power rates in recent years, squeezing margins at electric arc furnace plants and reducing the competitiveness of the local long steel products.
But recent reports from the local electricity agencies are pointing to the possibility of the reduction of power rates, as the rainy season could help restore water levels at hydroelectric plant dams, reducing the use of high-cost thermoelectric plants.
Wire rod is currently sold by distributors in the Brazilian domestic market at BRL 3,880/mt ($1,182/mt), ex-works, full taxes except IPI.
In November, both Gerdau and ArcelorMittal exported wire rod from Brazil at $528/mt FOB, with price deals probably closed in September.
USD = BRL 3.284 (December 18)