Brazilian producers are negotiating exports of wire rod of the mesh grade quality in a reference range of $585/mt to $595/mt CFR US East coast, the same price as last week, a local market source told SteelOrbis.
For exports to countries in South America, the price is stable from last week in a range of $610/mt to $620/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 destination.
Gerdau announced price increases for rebar and wire rod in the domestic market between 8 percent and 12 percent, effective January 1, 2020, after a previous announcement for an increase of prices in September.
The move is seen by analysts as a reflection of improvements in the Brazilian economy, chiefly in the housing sector. Although there are no immediate links with export markets, the increased domestic demand is expected to affect the export market, as the local producers remain operating at low pace, raising expectations for a reduced offer for exports, at least in the short term.
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, different quality grades and price deals probably closed in August.