The Brazilian producers are negotiating wire rod of the mesh grade for export at $620/mt, FOB conditions, against $610/mt last week, a local exporter told SteelOrbis.
He mentioned reports that one export sale was closed at $625/mt FOB, destined to South America. According to the source, prices are higher than those seen in the international markets, as exports are being directed to Latin American countries, favorable by competitive logistics.
Fresh deals continue to reflect the uncertainties due to the 25 percent tax on steel imports recently announced by the US government. In 2017, Brazil exported 146,000 mt of wire rod to the US.
The Brazilian wire rod exports in February declined by 47 percent from January to 27,900 mt, reflecting chiefly exports to the US reduced by 64 percent to 8,100 mt.
In February, Gerdau exported wire rod at $579/mt, while ArcelorMittal exported at $618/mt, both FOB conditions, with price deals probably closed in December 2017.