Brazilian producers are still negotiating wire rod of the mesh grade for export in a price range of $600/mt to $610/mt, FOB conditions, a price stable for seven consecutive weeks.
Domestic producers remain paying for the highest power rates in recent years, squeezing margins at the electric arc furnace (EAF) plants. As such, wire rod is currently sold by distributors in the Brazilian domestic market at BRL 3,880/mt ($1,178/mt), ex-works, full taxes except IPI.
In November, Brazil exported 41,400 mt of wire rod, 23 percent more than in October, at an average FOB price increased by 9.3 percent to $528/mt. The main destinations were Latin America (26,000 mt), the Caribbean (7,000 mt), the US (5,800 mt) and Canada (1,800 mt). Gerdau exported 21,600 mt, while ArcelorMittal exported 19,800 mt, both in average at $528/mt FOB, with price deals probably closed in September.
USD = BRL 3.293 (December 11)