With the same price level since early November 2017, the Brazilian producers are negotiating wire rod of the mesh grade for export at $600/mt to $610/mt, FOB conditions, a local exporter told SteelOrbis.
Producers are reportedly experiencing relief from high energy-related production costs, as power rates decline at the country’s hydroelectric plants during the rainy season. With lower production costs, producers are expected to reduce export prices to regain competitiveness, which is currently limited to markets in Latin America and the US.
In December, with price deals probably closed in November, ArcelorMittal exported wire rod at $626/mt, while Gerdau exported at $567/mt, both FOB conditions.
In the Brazilian domestic market, wire rod of the mesh grade is sold by distributors at BRL 3,880/mt ($1,212/mt), ex works, full taxes except IPI, stable in BRL over the last eight weeks.
USD = BRL 3.20 (January 15).