The mesh grade wire rod is currently sold in the Brazilian domestic market at BRL 2,620/mt ($1,057/mt), CFR at the client’s premises in the southeast, full taxes, reflecting little change in the last two months, a major producer told SteelOrbis.
The source mentioned that for the drawing grade product the price under the same basis is BRL 2,930 /mt ($1,177/mt), adding that prices so far were not affected by the downturn of the domestic demand, as the country’s economy is expected to show a GDP growth of a mere 0.3 percent this year.
According to the country’s ministry of development, industry and foreign trade, MDIC, exports of wire rod by the Brazilian producers reached 20,300 mt in September, three times the volume of August, pushed by 15,600 mt exported to the US and 2,500 mt exported to Africa, in both cases versus no exports in August.
Other destinations in September were Asia (down 36 percent to 1,600 mt) and South America (down 88 percent to 500 mt).
The average FOB export price of $620/mt points to the mesh grade exported at $553/mt and the drawing grade exported in the $625/mt to $677/mt range.
A major exporter told SteelOrbis that it is becoming increasingly difficult to export the basic commercial grades of wire rod from Brazil due to the fierce competition from Chinese producers, but he has recently concluded the export of a niche product of the drawing grade to a South American client at $800/mt.