Wire rod exports by Brazilian producers reached 21,000 mt in August, 44 percent less than in July, at an average FOB price increased by 23 percent to $541/mt.
According to figures by the local ministry of development, industry and foreign trade, MDIC, the average FOB price points to the mesh grade product exported at $429/mt at the drawing grade product exported at $584/mt, both FOB conditions. The main exporter was ArcelorMittal (17,000 mt), while Gerdau exported 3,000 mt.
The reduced volume reflects exports to the EU zeroed in August, against 25,000 mt exported to the region in July. The main destinations of August were the US (11,700 mt), Latin America (6,500 mt) and Canada (2,200 mt).
Meanwhile, Brazil imported in August 3,200 mt of wire rod from China and 1,100 mt from the EU.
A major distributor in the country’s southeastern region told SteelOrbis that he is selling the mesh grade product in the domestic market at BRL2,889/mt ($745/mt) and the drawing grade product at $3,289/mt ($848/mt), CFR, full taxes conditions, stable in BRL over two months.
The source mentioned that an increase in the two to three percent range is set for October, to compensate for part of the devaluation of the equivalent price in $, 13 percent over the period, to compensate for the part of the production costs is incurred in $.
1 US$ = BRL 3.82 (September 14)