Brazilian producers are negotiating exports of wire rod of the mesh grade quality to the US East coast in a reference range of $580/mt to $590/mt CFR, against $575/mt to $590/mt CFR last week, a local market source told SteelOrbis.
The source mentioned that the increase reflects higher prices for the billets used as feedstock to produce wire rod.
For exports to countries in South America, the range has also increased, to $605/mt to $615/mt from $600/mt to $615/mt, 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, when compared with US destinations.
In October, Brazil exported 34,200 mt of wire rod, against 17,700 mt in September. The main destinations were Latin America (29,400 mt at $494/mt), Asia (4,400 mt at $525/mt) and Canada (400 mt at $856/mt), all FOB conditions, with different quality grades and price deals probably closed in August. The shipment to Canada, from ArcelorMittal, refers to a specialty grade destined to produce steel cord to the pneumatic tire industry.