SÃO PAULO Brazils exports of ferrous scrap increased significantly last year, driven by growing demand from countries in Asia.
Exports of ferrous scrap reached 444,365 tonnes in 2012, up 71.7 percent from 258,767 tonnes the previous year, according to data from the countrys customs agency.
India was the largest purchaser of Brazilian ferrous scrap, more than doubling its intake to 186,015 tonnes last year from 84,824 tonnes the previous year.
Indonesia was next, taking 51,050 tonnes compared with just 1,984 tonnes in 2011.
Vietnam more than tripled its intake of Brazilian ferrous scrap last year to 45,426 tonnes from 9,626 tonnes in 2011, while South Koreas purchases rose 74.6 percent to 30,042 tonnes from 17,207 tonnes in the same comparison.
In December, Brazil exported 46,383 tonnes of ferrous scrap, up 59.1 percent from 29,156 tonnes in the final month of 2011.
Domestic scrap companies have been working on a legal document to fight an export tax proposed in August 2012. Porto Alegre, Brazil-based steelmaker Gerdau SA confirmed in November that it had been working with Brazilian steel institute IABr on the formulation of the export tax (amm.com, Nov. 27
IABr alleges that such an export duty would help mitigate the existing distortions in the trade and supply of scrap in the local market.A version of this article was first published by AMM sister publication Steel First.