Iron and steel scrap export prices have decreased by 20 percent in November, year-on-year, according to data from the nation’s ferrous scrap group Inesfa.
According to a Brazilian source, prices for iron and steel scrap in general have reached an average of FOB $323-$320/mt in November, despite being about 20 percent lower than in 2013. Inesfa said last year’s prices in November for those products were FOB $562/mt.
For a major scrap exporter based in Sao Paulo, despite having lower prices for iron and steel scrap in 2014, exports have been increasing.
“Brazil’s domestic market for iron and scrap steel in general collapsed. Consumption has diminished. Now it’s more viable to export than sell steel scrap domestically in Brazil,” the source said. “I believe there will be no change in iron and steel scrap export prices. Brazilian economy will be stagnated. I don’t believe there will be a recovery.”
He added that the proportion of steel scrap that is produced to supply the domestic market is about 60 percent, while the remaining 40 percent is destined to the export market.
“That figure tends to increase,” he said, adding that domestic prices for steel scrap are currently FOB BRL 430-450/mt ($161/mt-$168/mt.
For Inesfa president, Marcos Fonseca, “exports are seen as the only option to decrease the high scrap inventories.” Inesfa represents about 47 percent of all scrap produced in Brazil.
$1 – BRL 2.66