Brazilian producers remain negotiating wire rod of the mesh grade for export to South American countries in a price range of $580/mt to $590/mt FOB, the same level as last week, local market sources told SteelOrbis.
In December, the main destinations of the Brazilian wire rod were Asia (9,000 mt at $603/mt), the US (8,800 mt at $641/mt), Latin America (7,600 mt at $560/mt) and Canada (800 mt at $808/mt), FOB conditions and price deals probably closed in October 2018.
Such exports cover different quality grades, including the high-grade product, exported by ArcelorMittal to the US and Canada, destined to produce steel cord to serve the pneumatic tire industry.
Brazilian wire rod producers are reportedly trying to increase exports to compensate for the reduced domestic demand, in a strategy that includes the reduction of production as an alternative to sustain the supply/demand balance.