Brazilian producers remain negotiating wire rod of the mesh grade for export to Latin American countries in a price range of $560 to $570/mt FOB, a reference stable over the last three weeks, a local market source told SteelOrbis.
A combination of reduced domestic production, low demand from Latin American countries and high domestic prices remain fueling imports of the product, the source added. According to the Brazilian steel institute, IABR, the local steel industry is operation at a rate of 63 percent.
In June, ArcelorMittal exported 6,900 mt of wire rod at $753/mt, while Gerdau exported 4,200 mt of the product at $692/mt, both FOB conditions, different quality grades and price deals probably closed in April. The main destinations were the US (5,000 mt at $808/mt), Italy (2,900 mt at $695/mt), Thailand (1,700 mt at $704/mt), South American countries (600 mt at $561/mt), Trinidad and Tobago (500 mt at $531/mt), and South Korea (400 mt at $621/mt), all FOB conditions.
Also in June, Brazil imported 11,000 mt of wire rod from Turkey at $496/mt and 600 mt from Germany at $862/mt, both FOB conditions and different quality grades.