16 Jul 2024 | 21:35 UTC

Platts proposes to launch new Brazil ferrous scrap export assessments

Platts, part of S&P Global Commodity Insights, proposes to launch new daily Heavy Melting Scrap (HMS) 1/2 and Shredded Scrap FOB Brazil price assessments, effective Sept. 2, 2024.

The assessments would complement Platts established suite of domestic ferrous scrap benchmarks and build on existing comprehensive Platts scrap benchmarks globally.

Brazil saw record-high ferrous scrap export volumes in 2023, with about 800,000 mt of material flowing abroad, more than double the 369,305 mt exported in 2022, according to customs data.

The increase in exports has persisted so far in 2024, during a challenging time for the Brazilian steel recycling sector. It has historically focused on the domestic market, but has viewed exports as a relief valve in recent years amid reduced local steel consumption and production.

The new assessments and their specifications would be as follows:

Description Quality/Dimensions Volume Payment Terms Timing Location UOM
HMS 1/2 Containerized FOB Brazil ReMA (ISRI) 200-206 Min 200 mt Net 15 days Delivery 20-40 days FOB Southeastern ports $/mt
Shredded Scrap Containerized FOB Brazil ReMA (ISRI) 210-211 Min 200 mt Net 15 days Delivery 20-40 days FOB Southeastern ports $/mt

All market information reported to Platts may be considered for publication, including firm bids, offers, transactions, indications of value, as well as any other data deemed relevant to the assessment process.

Platts may normalize information heard in the market with differing specification, in order to meet the assessment specifications. Normalization brings market information in line with the Platts assessed specifications.

The assessments, which would follow Platts Brazil publishing schedule, would be published on a daily basis and reflect a Sao Paulo time market close (4:30 pm).

The daily assessments and associated monthly averages would be published in Steel Markets Daily and World Steel Review and in the Platts price point database.

Platts invites feedback on this proposal to LatAmMetalsteam@spglobal.com and pricegroup@spglobal.com by July 31, 2024.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.