Brazilian producers are negotiating wire rod of the mesh grade for export to Latin American countries in a price range of $560/mt to $570/mt FOB, the same as last week, a local market source told SteelOrbis.
The shortage of supply, reflecting reduced domestic production coupled with reduced demand from Latin American consumers, is giving rise to price volatility, while high domestic prices continue to fuel imports of the product, the source added.
In May, ArcelorMittal exported 16,600 mt of wire rod at $729/mt, while Gerdau exported 4,400 mt at $635/mt, both FOB conditions, different quality grades and price deals probably closed in March.
The average price of ArcelorMittal is highly impacted by exports to the US and Canada of a high-grade product, destined to produce steel cord to serve the pneumatic tire industry. If such product is excluded, the average export price of ArcelorMittal would drop to $579/mt FOB.
In May, Brazil imported 9,300 mt of wire rod, in average at $551/mt, FOB conditions.