A source from a Brazilian exporter told SteelOrbis that $600/mt, FOB conditions, is the current reference price for the export of mesh grade wire rod. The price compares with a range of $600/mt to $610/mt, which had followed a stable trend since November 2017.
It is not clear if the price reduction reflects efforts to extend sales beyond markets in Latin America and in the US, as power rates have been on a steady decline since the beginning of the year, improving margins at the country’s electric arc furnace plants.
In December, with price deals probably closed in November, ArcelorMittal exported wire rod at $626/mt, while Gerdau exported at $567/mt, bot FOB conditions.
In the domestic market, wire rod of the mesh grade is sold by distributors at BRL 3,880/mt ($1,215/mt), ex works, full taxes except IPI, stable in BRL over the last nine weeks.
USD = BRL 3.194 (January 22)