Brazilian producers are negotiating wire rod exports of the mesh grade quality to the US East coast, at a reference price of $595/mt CFR, against a range of $585/mt to $595/mt CFR last week, a local market source told SteelOrbis. Such prices have not yet been impacted by the decision this week by Donald Trump to reinstate Section 232 tariffs on imports of Brazilian steel.
For exports to countries in South America, the reference is $620/mt, against a range of $610/mt to $620/mt last week, CFR conditions for the mesh grade product. Higher logistics costs, derived from road transportation to Uruguay, Argentina and Chile are the reason for the higher prices compared to offers to the US. Freight rates were roughly stable week-on-week, the source added.
Sources say the uptrend reflects both higher domestic demand and a reduced availability of material for exports due to a still low domestic production pace.
In October, ArcelorMittal exported 19,200 mt of wire rod at $499/mt, while Gerdau exported 15,000 mt at $506/mt, both FOB conditions, with different quality grades and price deals probably closed in August.