The base price for the negotiations of wire rod exports from Brazil, stable since December, is set to increase by 10 percent as of March 1, a source from a major exporter told SteelOrbis.
Until then, wire rod of the mesh grade should remain exported at $580/mt FOB conditions, while for the drawing grade product it will stay at $600/mt FOB.
The source mentioned that the increase is part of a strategy that takes into consideration the alternative for selling domestically at higher prices, despite a possible reduction in volume of fresh export deals.
In January, Brazilian exports of wire rod increased by 2.1 percent from December to 38,200 mt, at average FOB prices of $400/mt for mesh grade and $580/mt for drawing grade.
The main destinations for Brazilian wire rod exports in January were South America (22,300 mt at an average FOB price, covering both grades, of $421/mt), the EU (10,500 mt at an average of $357/mt FOB), the Caribbean (2,400 mt at an average of $425/mt FOB) and the US (2,300 mt at an average of $580/mt FOB).
The exporters were Gerdau (30,700 mt), ArcelorMittal (6,400 mt) and the Votorantim Group (800 mt).