Brazilian producers are negotiating wire rod of the mesh grade for export at $620/mt, FOB conditions, stable from last week, a local source told SteelOrbis.
According to the source, the shortage of material for export continues, as domestic producers are focused on the more rewarding prices in the domestic market.
A second local source mentioned that Brazilian energy tariffs, increased over the last weeks, are forcing steel producers to relocate production in other South American countries, as the production of long steel products in Brazil is almost entirely based on the energy-intensive electric arc furnace (EAF) plants.
In June, Brazil exported 31,800 mt of wire rod, of which 23,200 mt at $657/mt by ArcelorMittal and 8,600 mt at $623/mt by Gerdau, both FOB conditions with price deals probably closed in April 2018. Such exports include different quality grades of wire rod.
The main destinations were the US (16,000 mt) and Latin America (15,600 mt), while a small tonnage was shipped to Canada.