27/11/2014 – Brazil’s 2014 ferrous scrap sales to fall as much as 10% year on year

Brazilian ferrous scrap sales in 2014 are expected to shrink from 5% to 10% compared with 2013, the National Institute of Ferrous Scrap, or Inesfa, said Wednesday.

The lackluster perspective is a result of lower demand from domestic long steel producers.

Inesfa did not provide detailed figures for the expected sales values and volumes for 2014.

The scenario of reduced demand also impacted scrap prices, forcing the sector to slash selling values of HMS and clean steel scraps “by around $40-60/mt from January through November, severely degrading scrap dealers’ margins,” said the group.

Mills and dealers are negotiating clean steel scrap prices for December deliveries, primarily in southeastern Brazil, at Real 480-520/mt ($190-206/mt) delivered mill, and HMS for Real 450-500/mt, according to Platts assessments.

Source – Platts.com