Brazilian producers are negotiating wire rod exports of the mesh grade quality to the US East coast in a reference price of $605/mt CFR, against $595/mt last week CFR, a local market source told SteelOrbis.
For exports to certain countries in South America, the reference price is $630/mt, against $620/mt last week, CFR conditions for the mesh grade product. Higher logistics costs, derived from road transportation to Uruguay, Argentina and Chile, are the reason for the higher prices when compared with US destination.
Sources tell SteelOrbis the export price increase reflects a combination of higher prices for the billets used as feedstock, high domestic demand and still-low production pace. However, sources predict stable prices in the near-term, with the possibility of a decrease in the medium term.
In November, Brazil exported 13,100 mt of wire rod, against 34,200 mt in October. The exporters of November were ArcelorMittal (8,500 mt at $685/mt) and Gerdau (4,600 mt at $533/mt). The destinations were South America (7,000 mt at $511/mt), the US (4,200 mt at $809/mt), Asia (1,500 mt at $648/mt) and Canada (400 mt at $857/mt). The exports to the US and to Canada, both by ArcelorMittal, refer to a special grade product, destined to produce steel cord to the pneumatic tire industry.