Brazilian producers remain negotiating wire rod of the mesh grade for export in a FOB price range of $640/mt to $660/mt, the same range as last week, a local market source told SteelOrbis.
The source added that such price range refers to sales to South American countries, the destination for most current wire rod exports. Sales to other destinations are reportedly in the range of $600/mt to $610/mt, FOB conditions.
A second local source mentioned that one Brazilian exporter is pushing prices to up to $690/mt FOB to a South American client, but there is no confirmation so far that a deal was effectively closed at that price range.
Exports compete with the Brazil 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 August, Brazil exported 15,100 mt of wire rod, one of the lowest monthly volumes of the last years, with average FOB export prices estimated at $678/mt for the drawing grade and $578/mt for the mesh grade, with price deals probably closed in June and also having South America as the main destination.