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Metal Recycling News December 18, 2014 08:50:54 AM

Brazilian November scrap export price fall 20% year on year: trade group

Paul Ploumis
ScrapMonster Author
Brazilian iron and steel scrap export prices in November fell to the lowest level of the year.
Brazilian November scrap export price fall 20% year on year: trade group

Sao Paulo (Platts) : Brazilian iron and steel scrap export prices in November fell to the lowest level of the year and were 20% below those seen in the same month of 2013, the country's National Institute of Ferrous Scrap said Wednesday.

Inesfa did not specify the type of ferrous scrap included in the survey. The group said the value of November scrap exports fell to an average of $323/mt, down from $562/mt a year earlier. November export volumes, however, hit a new high of 87,168 mt, more than double the 38,500 in November 2013 and up almost 15% from October's 76,036 mt.

According to Inesfa, the significant volume of Brazilian scrap exports is due to the companies' attempt to overcome weak demand from domestic steelmakers.

"Exports are seen as the only alternative to reduce the high scrap inventories," Inesfa President Marcos Fonseca said. The group represents companies responsible for 47% of all the scrap prepared in Brazil.

Insefa Vice President Murillo Trujillo said there is also a clear downward trend in scrap prices in the international market. "The world economy is pushing down commodity prices in general and ... steel prices. "Consequently, the value of scrap is affected," he added.

Fonseca further said 2015 might be a tough year for the Brazilian scrap market. "If there is no relief in the steel industry next year, the crisis scenario should remain," he said.

Courtesy : platts.com

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