Brazil exported 58,900 mt of carbon steel scrap in May, roughly the same volume of April, at an average FOB price of $242/mt, with price deals probably closed during March.
According to figures by the country’s ministry of development, industry and foreign trade, MDIC, the volume was almost entirely shipped to Asian countries, with India as top destination (22,600 mt at $232/mt), followed by Bangladesh (20,000 mt at $235/mt), Taiwan (1,900 mt at $178/mt), Indonesia ($1,400 mt at $238/mt) and Vietnam (1,100 mt at $202/mt)—all prices at FOB conditions.
A source from a major scrap dealer in Sao Paulo told SteelOrbis of his pessimism with the market, mentioning reduced steel demand from most industrial sectors, which is ultimately reflected in the demand for scrap.
He added that he remains exporting the HMS-1 grade at $195/mt, FOB conditions, a price stable in two months, while selling the same product in the domestic market at BRL 530/mt ($167/mt) FOB, also stable for the same period.
The source said that he will not be able to maintain the domestic price for a longer period, given the current negative trend of the market, adding that his activity will remain focused in the export market.
1 US$ = BRL 3.16 (June 5)