Wire rod exports from Brazil reached 18,600 mt in May from 13,500 mt in April, maintaining a positive trend since February, according to the ministry of development industry and foreign trade, MDIC.
The average FOB price was stable at $606/mt, almost entirely of the drawing grade product, in a price range of $589/mt to $648/mt. The main destinations were the US (15,500 mt at $589/mt) and South American countries ($648/mt).
According to a major trader, the Brazilian exports of wire rod are made among producers Gerdau and ArcelorMittal and their associated companies abroad, so prices are not necessarily representative of market conditions.
A major producer told SteelOrbis that he is selling the drawing grade product in the domestic market at BRL3,511/mt ($1,135/mt) and the mesh grade product at BRL3,356/mt ($1,085/mt), CFR, full taxes conditions, same price in BRL since a 12 percent increase from April 1.
Such high domestic prices maintain a small flow of wire rod imports by distributors, reaching 4,700 mt in May and having as origins the EU (1,900 mt at $674/mt), Asia (1,400 mt at $497/mt) and South American countries (1,400 mt at $564/mt), all FOB conditions.
1 US$ = BRL 3.12 (June 12)