Brazilian producers are negotiating wire rod of the mesh grade for export in a price range of $625/mt to $630/mt, FOB conditions, the same reference as last week, a local market source told SteelOrbis.
According to the source, the producers are reconsidering strategies now that the US will grant exclusions from Section 232 quotas to steel imports from Brazil. The devaluation of the local currency vis-à-vis the US dollar is also playing a role in a possible change of strategy toward export markets. Currently, the focus remains with the domestic market and its higher prices, with few fresh export deals being closed.
In 2018, monthly exports of wire rod from Brazil have averaged 30,000 mt, against 100,000 mt in 2015, reflecting chiefly a loss of competitiveness derived from increasingly higher power rates at the country’s EAF plants.