According to Brazilian exporters, the most recent wire rod export deals remain closed in Brazil at $587/mt FOB for the mesh grade product and $605/mt FOB for the drawing grade product, following the postponement of a 10 percent increase announced for March 1.
Still, current offers reflect a substantial increase from February exports.
Brazil exported 33,200 mt of wire rod in February, 13 percent less than in January. Exports of mesh grade wire rod averaged at $446/mt FOB in February, while the drawing grade product was exported in average at $490/mt FOB.
The US was the top destination for Brazilian wire rod exports in February, with 19,500 mt at an average price (including mesh and drawing grad) of $484/mt, followed by South America (9,900 mt at an average of $449/mt), the Caribbean (2,000 mt at an average of $434/mt) and Asia (1,500 mt at an average of $518/mt), all FOB conditions.
The main exporter was ArcelorMittal (22,000 mt at $490/mt), followed by Gerdau (10,700 mt at $442/mt) and the Votorantim Group (500 mt at $519/mt), with price deals probably closed in December 2016.