Brazilian carbon steel scrap exports fetched 591,100 mt in 2014, 41 percent more on yearly basis, but at an average FOB export price 6 percent lower, $301/mt.
According to the country’s ministry of development, industry and foreign trade, MDIC, most of the tonnage was shipped to Asian countries, 582,400 mt, representing a 48 percent increase from 2013.
In December, such scrap exports reached 79,200 mt, which despite representing a 4 percent reduction from the previous month, points to an annualized volume of more than 950,000 mt, representing a 61 percent increase over the volume exported in 2014.
A major scrap processor in the city of Sao Paulo told SteelOrbis that he has sold along December the HMS I grade carbon steel scrap in the Brazilian domestic market at BRL580/mt ($214/mt), ex-works, no taxes but Pis Cofins levies included.
The BRL figure was stable in relation to November, but the $ figure went down by 4.9 percent from the $225/mt of November, reflecting the devaluation of the BRL in the period.
The source mentioned that the domestic demand was stable in December from the previous months, but did not recover so far from a 20 percent reduction from the average volumes of the first half of the year.
According to the source, prices for carbon steel scrap in the domestic market, in spite of the lackluster domestic demand, will face the competition from foreign markets and could increase over the next months.
The source added that he is currently receiving requests for exports in the $225/mt to $240/mt range for the HMS I product.