A dispute for the price of scrap between Brazilian scrap dealers and rebar producers has continued in April, a major scrap trader in Sao Paulo told SteelOrbis.
According to the source, rebar producers are arguing that they cannot pay the current price for the HMS-1 grade scrap, BRL530/mt ($176/mt), ex-works, full taxes, as such price is not compatible with the price of the rebar and the cost of electricity, leading to a lack of profitability.
But scrap traders claim that the scrap price is in line with international markets and that they are currently selling the product to Asian buyers at $195/mt FOB.
In March, Brazil exported 57,600 mt of carbon steel scrap to Asian countries, at $234/mt FOB.
Meanwhile, a steel trader told SteelOrbis recently that he is selling rebar in the domestic market at the equivalent to $1,100/mt, CFR, full taxes.