A major exporter of HMS-1 and busheling scrap told SteelOrbis that it’s seeing no signs of improvement in the Brazilian domestic market, as prices have stabilized in the last few weeks.
According to a Sao Paulo-based exporter, HMS-1 grade scrap was being traded domestically at BRL 550/mt ($184.25/mt), ex-works, no taxes included. The price is similar to the BRL 530/mt ($176/mt) price assessed by SteelOrbis on April 23.
“Demand has been stagnant in Brazil,” a source said, adding the trend should continue for the coming months.
As for busheling scrap, producers expect no improvement in the product’s price from now. In March this year, the product was being traded in the domestic market at BRL 600/mt ($192.70), ex-works, no taxes included.
In the last few days, there was some improvement in the product’s value, which made busheling prices reach BRL 650/mt ($217.75/m) ex-works. But from now on, producers expect prices to remain stable.
A source said output has diminished, as the nation’s automotive industry, a key feedstock provider for busheling scrap, is struggling to balance car output with lower demand.
“Busheling scrap volumes in Q1 this year decreased between 30 and 40 percent, year-on-year,” a source estimated.
Since the availability of the product has diminished in the domestic market, selling the product overseas has not been an option at this time, a source added.
$1 = BRL 3.06