SÃO PAULO Brazils aluminum scrap prices have risen sharply this month compared with August and a year earlier, according to a survey released by Brazilian aluminum association Abal.
The most expensive class of secondary aluminum items in Brazilscrap profile cuttings, unpainted and without contaminants (iron, oil, grease and rivets)ended the second week of September at 4,750 reais ($2,163) per tonne, up 6.5 percent month on month and 16.1 percent higher year on year, according to Fundação Getúlio Vargas (FGV), which carried out the survey for Abal.
"We hope prices do not increase any more, as it is a very disruptive situation for the market," a scrap dealer told AMM sister publication Metal Bulletin.
"The (movement in the) dollar and the (London Metal Exchange) price, which saw a slight drop recently, would push prices down, except that the shortage of scrap in the market is still intense, which drives prices up," the dealer added.
"I believe that prices will reach a more stable level soon. Less scrap is being offered because sellers expect LME prices will move (so they are waiting)," a second scrap dealer said.
Used beverage can (UBC) briquettes moved to 3,450 reais ($1,568) per tonne, up 5.8 percent and 13.1 percent in the same comparisons, while loose or baled UBCs rose 5.5 percent and 16.3 percent, respectively, to 3,280 reais ($1,490) per tonne.
The average price of aluminum sheet and foil cuttings, painted or unpainted, with a maximum impurities content of 3 percent was 3,680 reais ($1,671) per tonne, up 8.6 percent month on month and 7.6 percent higher year on year.
A version of this article was first published in AMM sister publication Metal Bulletin.