Brazilian producers are negotiating wire rod of the mesh grade for export in a range of $625/mt to $630/mt, against $620/mt last week, FOB conditions, a local market source told SteelOrbis.
The source added that few export deals are being currently closed, as the priority for producers remains in the domestic market.
Domestic wire rod prices from distributors, in small volumes, usually exceed the equivalent to $1,200/mt, ex-works conditions, full taxes except IPI. Large volumes or direct sales by producers are usually entitled to significant discounts.
In July, Brazil exported 22,600 mt of wire rod, with the mesh grade sold at an estimated $628/mt and the drawing grade at $691/mt, both FOB conditions.
The peak volume of the wire rod exports from Brazil was reached in 2005, with monthly averages around 100,000 mt, having declined since due to the loss of competitiveness derived from increasingly higher power rates, as most of the local production of long products is based on the intensive electricity consumer EAF technology.