Brazilian producers remain negotiating wire rod for export in a price range of $600/mt to $610/mt, FOB conditions, with reference to the mesh grade product. The prices have been stable for two weeks.
A source from a local exporter told SteelOrbis that the price level, slightly higher than international prices, is competitive in sales to nearby markets, such as Latin America and the Caribbean.
Margins within the Brazilian long steel sector remain squeezed by the current power rates, sources say, which are the highest in recent years.
A source mentioned that, despite the high power rates, competitiveness has increased, although moderately, by the recent devaluation of the BRL vis-à-vis the USD
In October, Gerdau exported 26,100 mt of wire rod in average at $486/mt, while ArcelorMittal exported 7,500 mt at $490/mt, both FOB conditions, with price deals probably closed in August.