A major producer in the state of Sao Paulo told SteelOrbis that domestic prices for busheling scrap have increased by 16.6 percent in July, after a period of stability that lasted from March to June this year.
The source said it is currently selling the product domestically at FOB BRL 700/mt ($212.97/mt); a FOB BRL 100/mt ($30.42/mt) increase from late June.
Despite the price increase, the source said that producers are still bearish regarding the scrap market in Brazil. “Consumption of the product continues low, as well as the supply of the product,” he said, adding that the nation’s automotive industry, a key feedstock provider for the product, is still struggling to balance production volumes with lower sales.
As for HMS-1 grade scrap, prices remain stable, in line to the recent prices assessed by SteelOrbis from different sources in Brazil.
“Producers are now looking more to the Brazilian domestic market,” a major exporter based near Campinas said. “About 95 percent of our production has been directed to the domestic market,” he said, adding that such a trend has started in June this year.
The source said it is selling the HMS-1 grade in the domestic market at FOB BRL 520-550/mt ($158.21- 167.34/mt), the same price seen in June.
1 US$ = BRL 3.29 (July 23)