Brazilian producers remain negotiating wire rod of the mesh grade for export in a price range of $600/mt to $610/mt, FOB conditions, a local exporter told SteelOrbis.
Such level is the same since early November 2017, the source said, adding that margins remain squeezed in export sales, due to high production costs resulting from the country’s highest power rates in recent years.
In the domestic market, wire rod of the mesh grade is sold by distributors at BRL3,880/mt ($1,201/mt), ex works, full taxes except IPI, stable in BRL over the last eight weeks.
Fresh numbers from the Brazilian ministry of industry, foreign trade and services, MDIC, indicate wire rod exports in December declined by 10 percent compared to November to 37,100mt, at an average FOB price of $606/mt, pointing to the mesh grade exported at $561/mt and the drawing grade exported at $647/mt, with price deals probably closed in October 2017. ArcelorMittal exported 24,600mt and Gerdau exported 12,500mt, while the main destinations were Latin America (16,800mt), the US (16,700mt) and the Caribbean (3,000mt).
USD= BRL 3.23 (January 8)