With the proposed tax on exports of ferrous scrap from Brazil, it is not only worrying Brazilian scrap traders but also the Asian steel mills will also be impacted, highlighted trade experts. Two-thirds of Brazilian scrap metal is exported to countries like China, India and Iran, and which has also doubled in the last few years . If export taxes are imposed, offers from Brazil will be not affordable and also domestic offers in Brazil will fall as consumption is not as high as demand.
Brazilian ferrous scrap exports increased over 70% y-o-y in 2012, driven by a growing demand from Asian countries.Exports amounted to 444,365 tonnes, against 258,767 tonnes a year earlier, according to the country’s customs data. The largest buyer of Brazilian ferrous scrap was India with 186,015 tonnes purchased last year.
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