A source from a Brazilian steel producer told SteelOrbis there are rumors that one of the country’s major longs producers will increase prices in July, for its entire production line, covering local and export sales.
The source mentioned the increase figure would be around 8 percent, which would result in exports of wire rod at $540/mt, for the drawing grade product, and $523/mt for the mesh grade product, both FOB conditions.
In his view, the new increase would be extemporaneous, as domestic sales are already depressed by poor market conditions, while exports would lose competitiveness when compared to international prices. But he conceded that if one of the players increase prices, the others eventually will follow.
In May, ArcelorMittal exported wire rod in average at $443/mt, while Gerdau exported at $381/mt, FOB conditions, price deals probably closed in March.