A major scrap processor in the city of Sao Paulo told SteelOrbis that he is selling the HMS I grade carbon steel scrap in the Brazilian domestic market at BRL580/mt ($225/mt), ex-works, no taxes but Pis Cofins levies included, against BRL620/mt ($243/mt) one month ago.
The source added that he has just received an offer for imported scrap of the same grade at $240/mt, CFR.
According to the source, prices are moving downwards in recent months, following reduced demand from the steel industry, reflecting for its turn the lackluster demand of rebar from the civil construction sector.
He believes that demand and prices should move sideways along December in a seasonal pattern, but expects improvements for January 2015.
With the reduced demand from the local steel industry, the Brazilian scrap processors have consistently increased their exports of carbon steel scrap, from 60,300 mt in 2010 to 440,600 mt along the January-October period of 2014.
The volume exported in October was 72,100mt, 13 percent less than in September, at an average FOB price 7 percent lower, $304/mt.
From the volume of October, 71,200 mt were shipped to Asian countries.