Brazilian producers are negotiating wire rod of the mesh grade for export to Latin American countries in a price range of $570/mt to $580/mt FOB, the same range as last week, a local market source told SteelOrbis.
Local longs producers remain operating at a low capacity utilization rate, currently estimated at 60 percent, while focused on serving the local domestic market; limited material is available for export, a local trader told SteelOrbis.
In April, ArcelorMittal exported 22,400 mt of wire rod at $727/mt, while Gerdau exported 5,300 mt at $564/mt, both FOB conditions, with different quality grades and price deals probably closed in February.
Meanwhile, Brazil imported in April 6,800 mt of wire rod, of which 4,000 mt from Turkey at $552/mt, 1,000 mt from Ukraine at $524/mt, 1,000 mt from Germany at $848/mt, 500 mt from China at $627/mt, 200 mt from Argentina at $649/mt and 100 mt from Japan at $807/mt, all FOB conditions.
The volume of wire rod imported by Brazil in April is the monthly highest in recent years, possibly pointing to an upward trend reflecting the high domestic prices and the low production pace.