A source from a major steel distributor in Brazil told SteelOrbis that there are rumors that wire rod prices will decrease by 5-8 percent from current levels, as a result of the reduced domestic demand and a consequent dispute among producers for the few clients needing tonnages of the product.
He mentioned that civil construction and auto industry are the sectors that are suffering the strongest impact from the current crisis, which according to analysts will reduce the country’s GDP this year by an estimated 1.8 percent on yearly basis.
He added that he is still selling the mesh grade product in the domestic market at BRL3,140/mt ($1,006/mt) and the drawing grade product at BRL3,511/mt ($1,125/mt), CFR, full taxes conditions, same price in BRL since a 12 percent increase from 01 April.
In May, Brazil exported 15,500 mt at $589/mt the US and 2,100 mt to South American countries at $648/mt, both FOB conditions for the drawing grade wire rod.
1 US$ = BRL 3.12 (June 29)