A major scrap processor in Sao Paulo told SteelOrbis that his scrap volumes have declined 40 percent from one year ago, ascribing the reduction to the lackluster activity in most sectors of the industry, chiefly the auto and home appliances industries.
“Demand for scrap went down, but the supply also did it, so the average price is relatively stable,” he said, adding that he is exporting the HMS-1 grade product at $185/mt, CFR to Asia, which translates into $111/mt FOB conditions, while in the domestic market he is selling the same grade at BRL450/mt ($118/mt), FOB no taxes included, in both cases the same price in two months.
In October, the Brazilian exports of carbon steel scrap declined from September by 6.8 percent to 66,900 mt, at an average FOB price reduced by 10.1 percent to $164/mt, pointing to the HMS-1 grade slightly reduced to $152/mt.
The shipments were almost entirely destined to Asian countries, with 33,800 mt at $155/mt to India, 17,400 mt at $161/mt to Bangladesh, 6,800 mt at $190/mt to Pakistan and 5,900 mt at $174/mt to Indonesia, all FOB conditions, while smaller tonnages were shipped to Vietnam, Hong Kong and China.
USD = BRL 3.79 (November 18)