Inesfa: exports of scrap metal used in steel manufacturing grew 89% in 2022

Brazilian companies in the scrap metal business, an important input for the manufacture of steel in electric steel plants, have once again increased their exports. Last month, shipments totaled 71,900 tonnes, a 43% increase over March.

According to Inesfa, an entity representing companies in this economic segment, the volume exported from January to April 2022 reached 192,500 tonnes, almost double (89%) the 102,000 tonnes exported a year ago. These figures were compiled by Secex, an agency of the Ministry of Economy.

The assessment is that the war in Ukraine and the increase in the prices of pig iron and other inputs used in steel composition are impacting the world market. But, according to Clineu Alvarenga, president of Inesfa, there is already a present tendency in the market for prices to level out.

“The value of scrap metal tends to stabilize after a period of artificial increases,” says Alvarenga in a statement by Inesfa. He noted that the products exported are the recyclers’ surplus in domestic market sales.

See below the track record of Brazilian exports of ferrous waste and scrap metal from January 2021 to March 2022. These data are from Datamar’s DataLiner.

Exports of Ferrous Waste and Scrap Metal (HS 7204) | Jan 2021 – March 2022 | TEU

Source: DataLiner (click here to request a demo)

The official says that exports are limited to 5% of local scrap production. This is an alternative found by the sector for more than a decade to ensure the maintenance of activity in low-movement seasons.

Citing S&P Global Platts, an American agency specializing in providing reference prices and benchmarks for commodities, Inesfa says that information from the local market indicates stabilization of prices this month and possibly a decline as of June.

The consumption of ferrous scrap in Brazil in 2022 may exceed that of 2020, when it reached almost 8 million tonnes. Still, it may fall below the consumption estimated by Inesfa of 9 million tonnes last year.

Source: Valor Econômico

To read the full original article, please go to:

https://valor.globo.com/empresas/noticia/2022/05/16/exportao-de-sucata-para-fabricao-de-ao-teve-crescimento-de-89-pontos-percentuais-no-ano-aponta-inesfa.ghtml

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