The Brazilian ferrous scrap market saw pricing remain flat Monday as dealers said prices have reached the bottom.
The selling side said prices have dropped as much as they could, while the buying side said it is pursuing lower levels over growing concerns about steel demand.
Domestic clean steel scrap prices remained within the Platts weekly assessment at Real 440/mt ($113.23/mt), based on a range of Real 420-460/mt. The HMS 1/2 weekly assessment is static at Real 430/mt, based on a range of Real 420-440/mt.
The weekly turnings assessment was also stable at Real 310/mt, based on a new range of Real 300-320/mt. All prices are on a delivered-to-mill basis.
"Clean steel scrap and HMS prices are even closer, and at this rate, soon there will be no incentive for selling this material," said a dealer that believes prices have reached the bottom. "I am exporting clean steel scrap to alleviate my stocks and this is the best alternative nowadays."
Another dealer agreed prices are too low, saying he is seeing many companies shutting doors amid the poor scenario.
"They [other companies] are looking to sell another types of materials to survive," he said.
