Export price of scrap metal from Brazil fell 20 percent

The country's National Institute of Ferrous Scrap said that export prices for ferrous scrap in November fell to their lowest level in 2014 and were 20 percent lower than in the same month of 2013.

The value of prices for export of scrap metal in November fell to an average of $ 323 per tonne, compared to $ 562 per tonne a year earlier. At the same time, November exports reached a new high of 87,168 tonnes, more than double the 38,500 tonnes of November 2013 exports and almost 15 percent more from 76,036 tonnes in October 2014.

The National Ferrous Scrap Institute explains the significant increase in Brazilian exports of scrap metal by an attempt by Brazilian companies to overcome weak demand from domestic metallurgists.

“Exports are seen as the only alternative to reduce high stocks of scrap metal,” said Inesfa Group President Marcos Fonseca. The group represents companies that recycle 47 percent of all metal waste in Brazil. He noted that the trend of prices for scrap metal in Russia and on the international market is also clearly expressed.

“The global economy is pushing down commodity prices in general, as well as steel prices. Consequently, the cost of scrap is subject to the same trend,” he added. Fonseca said 2015 could be a difficult year for the Brazilian scrap market. "If there is no relief for the steel industry, then next year, the crisis scenario will continue," he said.