A major scrap exporter told SteelOrbis that HMS scrap exports are expected to increase in Brazil in the near term if prices remain stable.
“Brazilian exports of HMS scrap increased within the last two months as a result of a weaker domestic demand,” the Sao Paulo-based exporter said, adding about 20-25 percent of the nation’s production is being directed to the global market.
HMS scrap has been exported recently at a $650-$670/mt FOB price range, and as domestic demand slows down, more heavy scrap is expected to be sold overseas. According to sources, a few months ago, up to 95 percent of Brazil scrap production was sold within the domestic market.
Further, sources say that Brazil steel mills have seen diminished sales and domestic demand for scrap. If prices remain the same, heavy scrap exports are likely to increase.
$1 = BRL 2.24