Brazil sees increased scrap exports in 2019

Monday, 27 January 2020 00:49:03 (GMT+3)   |   Sao Paulo

Brazil saw its scrap exports in 2019 increase amid a weak domestic steel market, a media report from Valor said.

The media report said Brazil exported 700,000 mt of scrap in 2019, almost twice the volume it exported in the year prior, which reached 356,000 mt.

The increased scrap exports are due to a weak domestic steel market, the report said. The Brazilian steel industry posted recently weaker steel figures in 2019, on a year-on-year analysis, in all indicators.

Brazilian crude steel output decreased 9 percent in 2019, year-on-year, to 32.2 million mt, while domestic steel sales in 2019 reached 18.5 million mt, 2.2 percent down, year-on-year. Apparent steel consumption in 2019 was 20.6 million mt, 2.7 percent down, year-on-year, according to IABr.

At the same time Brazilian mills use their own raw material in a scenario of decreased domestic steel demand, Brazilian scrap producers saw their sales fall 5 percent in 2019, year-on-year, in terms of volume, said Inesfa, the country’s institute of iron and steel scrap companies.

“The decreased domestic scrap sales were offset in part thanks to exports,” said Inesfa president, Clineu Alvarenga.

Inesfa expects Brazil’s domestic scrap market to improve, as prospects for local steelmakers improve as well.

According to an estimate from Inesfa, Brazilian mills consumed about 8.5 million mt/year of scrap in 2019. Such a level in 2020 should improve to the 9-9.5 million mt/year range, Alvarenga said.

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