Brazilian producers are negotiating wire rod of the mesh grade for export to South American countries in a price range of $630/mt to $650/mt FOB, against a range of $640/mt to $660/mt FOB last week, a local market source told SteelOrbis.
According to the source, sales to other destinations reportedly remain in the range of $600/mt to $610/mt, FOB conditions.
Exports currently compete with the Brazilian domestic market, where wire rod prices of the mesh grade currently exceed $1,300/mt, ex-warehouse, full taxes except IPI conditions, when supplied by distributors in small volumes.
In September, Brazil exported 6,500 mt of wire rod, the lowest monthly volume in recent years. ArcelorMittal exported 4,000 mt at $682/mt, while Gerdau exported 2,500 mt at $706/mt, both FOB conditions. The main destinations were Asia (3,500 mt) and South America (2,000 mt), while smaller tonnages were shipped to Canada (700 mt) and Turkey (300 mt).