October 08, 2008

Brazil sees positive outlook for ferrous scrap in 2008

Mr Sergio Camarini president of Sao Paulo state ferrous & nonferrous scrap metal wholesale union Sindinesfa said that the outlook for demand and prices for Brazilian ferrous scrap is strong.

Mr Camarini said that "The perspective is positive. There is no surplus at the moment, if there is scrap on the market, it will be sold. Increased production by steel producers within Brazil expands the need for ferrous scrap and the trend is to see an improvement in prices."

He said that performance in 2007 by the ferrous scrap sector was considered average. Prices declined in October 2007 and went up in the final months of 2007, without providing specific figures. He added that "Prices are currently averaging BRR 360 to BRR 380 per tonne and we could see an improvement of about 5% to 7% in this value in 2008."