Posted on 11 Oct 2016
Year-end negotiations for domestic steel scrap spot prices in Brazil remained stable in the first week of October, sources said.
The S&P Global Platts weekly assessment for clean steel scrap remained stable at Real 405/mt ($125/mt), based on a range of Real 395-415/mt for bids, offers and deals.
The weekly heavy melting scrap 1&2 assessment was also stable at Real 397.5/mt, based on a Real 385-410/mt range.
The turnings assessment was Real 300/mt, based on a range of Real 290-310/mt. All prices are on a delivered-to-mill basis.
Lower demand and supply is common this time of year, and sources indicated that has led market participants to hold prices steady for now.
“Prices are stable for all types of scrap in October, but for November there is an expectation of decreased prices, but it is still too early to [be definite],” a source said.
If the November market does not show signs of improvement, dealers have indicated they may be prepared to decrease their prices to avoid accumulating scrap inventory.
“Scrap prices are on the same level and I am still waiting for an improvement of the market but [it has not happened yet]. If the market does not react, prices will fall for sure,” a second source said.
“In my opinion, the market is stopped for all materials. Nobody is closing big deals and I think the situation will remain the same until next year,” a third source said.
