Brazilian scrap producers have seen no improvement in the domestic demand for busheling scrap, as prices remained stable in the past two months, a source told SteelOrbis.
According to a major exporter based in the state of Sao Paulo, busheling scrap has been sold domestically at a FOB BRL 600/mt ($192.40/mt), excluding taxes, the same price seen in the end of March.
"Consumption of the product is low, as we're lacking feedstock to produce the product," a source said. "The availability of material to produce busheling scrap has fallen about 30-40 percent in the past twelve months," the source added.
As for HMS-1 grade, both domestic and export prices tend to remain stable, according to the forecast of a scrap producer.
"We're selling HMS-1 in the domestic market for BRL 520-540/mt, ex-works, no taxes included."
Export prices are also stable, a source said, adding domestic demand is expected to improve, as the difference between the domestic and the export prices are diminishing.
In June 5, SteelOrbis reported export HMS-1 prices at FOB $195/mt, while now a major scrap exporter said it is selling the product overseas at FOB $176.37/mt.
$1 = BRL 3.13 (June 25)