Brazil has witnessed a remarkable 102% surge in carbon steel scrap exports during the first 10 months of 2023, reaching an impressive 617,900 tons. This represents an astounding 281% increase compared to the same period in 2022.
The surge in export volume has been accompanied by a notable uptick in the average export price of Brazilian scrap, with October 2023 recording $354 per ton FOB. This marks a significant climb from the $333 per ton FOB reported in October 2022.
Analysts are pointing to the lower domestic steel production and sales within Brazil as a key driver behind this substantial increase in exports. Notably, the gap left by reduced domestic production has been predominantly filled by imports, particularly from economic powerhouses such as China and Russia.
Despite the surge in imports, Brazilian steel producers are grappling with the situation and have officially requested a 25% tariff on all steel imports. This move is aimed at safeguarding the interests of the local industry. However, authorities have not yet given their approval to this tariff proposal, leaving the steel producers in a state of uncertainty.
The dynamics of Brazil's steel industry are evidently undergoing a transformative phase, with the balance between domestic production and international trade being a focal point of discussion among industry experts and stakeholders. The coming months will likely provide more insights into how these developments will shape the future of Brazil's steel sector on the global stage.