A major scrap processor in the state of Sao Paulo told SteelOrbis that he is selling the HMS-1 grade in the domestic market at the same BRL530/mt ($166/mt), ex-works, full taxes, reflecting a neutral trend since last month—however a price reduction is expected in April.
According to the source, mini-mills have warned that their rebar sales dropped in both volume and price, meaning that they will not be able to pay the same price for scrap next month. Reportedly, mills are seeking a scrap price drop in April of about BRL30/mt to BRL40/mt.
The source mentioned that a price reduction is unavoidable, but not to that extent, as the scrap processors have the alternative to export the product—quoting opportunities to export FOB at $190/mt, against a range of $210/mt to $215/mt FOB one month ago.
In February, Brazil exported 34,000 mt of carbon steel scrap, 40 percent less than in January, at an average FOB price of $270/mt.