A major scrap processor in the state of Sao Paulo told SteelOrbis that the price of the HMS-1 grade in the domestic market is stable at BRL530/mt ($174/mt), contrary to expectations that prices should decline in April.
According to the source, the local mini mills had warned in March that they could not maintain the price in April, as their rebar sales were reduced in volume and prices over the last months.
“But so far in the month we have been protected by the increased Asian demand,” the source said, adding that his last export deal was closed FOB at $195/mt, against $190/mt FOB three weeks ago.
Figures by Brazil’s ministry of industry, development and foreign trade, MDIC, indicate that in March the country’s exports of carbon steel scrap went up from February by 69 percent to 57,600 mt, almost entirely shipped to Asian countries, at an average FOB price of $234/mt, 13 percent lower than in February.
A severe downturn in the Brazilian civil construction sector reduced the demand for rebar, affecting the whole production chain, including the mini mills, scrap processors and collectors.
The mini mills were also affected by the power tariffs, which have increased this year by 30 percent.
$1 = BRL 3.05