For the seventh consecutive week, Brazilian producers remain negotiating mesh grade wire rod exports at a reference price of $650/mt, FOB conditions, a local exporter told SteelOrbis.
He added that there are still expectations for higher prices, as production costs will soon sharply increase due to higher power rates from low water levels at the dams of the country’s hydroelectric plants.
Starting in October, consumers will pay the highest power rates in the country’s recent years, as more energy will be generated from fossil fuels instead of low-cost hydroelectric energy.
“If increased wire rod prices are not achieved, we will have to increase focus in the domestic market, where prices are more rewarding,” one source said.