A major scrap processor in the state of Sao Paulo told SteelOrbis that he is exporting the HSM-1 grade to Bangladesh at $280/mt, CFR conditions, a price stable over the last few months.
According to the source, such CFR price includes freight and other expenses worth BRL250/mt ($80/mt), to send the product to the Asian country, which gives the company a FOB price of $200/mt.
He mentioned that volumes exported are showing a small reduction in recent months, adding that he expects a relative stability for the rest of the year, although he cannot be sure about it.
“Scrap in Bangladesh, such as in other countries of the region, is usually the basic raw material to produce rebars, so the market ultimately depends on the local civil construction sector,” he said.
In May, Brazil exported 58,900 mt of carbon steel scrap at an average FOB price of $242/mt, of which 20,000 mt to Bangladesh at $235/mt FOB.
1US$ = BRL 3.11 (June 30)