Brazilian producers are negotiating exports of wire rod of the mesh grade quality at $555/mt, against $585/mt last week, FOB conditions, a local market source told SteelOrbis.
The source mentioned that the decline reflects an attempt by Brazilian exporters to offer more competitive prices to fight competition, chiefly from China, as Brazilian wire rod exports to South American countries have declined from 20,700 mt in December to 1,900 mt in January.
According to the source, the production pace at EAF plants in Brazil is gradually being restored, generating more material available for export. Such plants were operating at 63 percent capacity over recent weeks.
In February, Brazilian exports of wire rod are expected to increase from the 16,800 mt exported in January, reflecting not only the demand from the US, covering the second quarter quota under US Section 232 guidelines, but also postponements of shipments from January due to intensive rains in the Southeastern states of Minas Gerais and Espirito Santo, where most of the production of long products is located.