Ferrous scrap exports fall 21% in May YoY, according to Secex

Exports of ferrous scrap, a feedstock used by steel mills, fell 63.5% in May this year, hitting 26,178 thousand tonnes, down from 71,877 thousand tonnes in April last year.

In comparison to May 2021 (33,060 tonnes), the retraction was 21%, according to data released by the Secretariat of Foreign Trade (Secex), an organ of the Ministry of Development, Industry, and Foreign Trade. From January to May 2022, exports reached 218,668 thousand tonnes compared to 135,053 thousand tonnes in the first five months of 2021, an increase of 62%.

According to Clineu Alvarenga, president of the National Institute of Recycling (Inesfa), a trade body that represents more than 5,600 ferrous scrap processors in Brazil, scrap prices were artificially high in the domestic market in April and May. Now, they are beginning to adjust to the international reality.

Concerning the reduction in exports, Alvarenga points out that when demand in the country increases, exports tend to fall because the sector only sells abroad the surplus volume not consumed domestically.

According to S&P Global Platts, an American agency specializing in providing reference prices and benchmarks for commodity markets, suppliers of ferrous scrap to Brazilian steelmakers saw price cuts for the second consecutive week on June 13 and are awaiting further cuts scheduled for the second fortnight of the month. This cut occurs despite low inventories at steel mills.

In addition to iron and steel, Inesfa represents the players in the market for recycling glass, paper, and electronics, among others. The activities involve more than 5 million people who live by collecting and properly disposing of recyclable inputs.

Source: Dinheiro Rural

To read the full original article, please go to: https://www.dinheirorural.com.br/exportacoes-de-sucata-ferrosa-caem-21-em-maio-segundo-secex/

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