Brazilian aluminium scrap prices up again in October

Brazil’s domestic aluminium scrap market continued to strengthen in October with most prices recording monthly rises, while all were up from levels a year earlier, according to a survey released by the Brazilian aluminium association, Abal.

The most expensive class of secondary aluminium items in Brazil – scrap profile cuttings, unpainted and without contaminants (iron, oil, grease and rivets) – stood at 4,920 Reais ($2,247) per tonne at the end of October, up 1.2% on the month and 16% higher year-on-year, according to Fundação Getúlio Vargas (FGV), which carried out the survey for Abal.

“This increase has been going on for the past few months. We believe that in November and December, there could be a change in the [current] scenario,” Carlos Roberto Morais, coordinator of Abal´s recycling commission told Metal Bulletin.

“There´s a limit for the increase […] scrap prices can´t be more expensive than primary aluminium prices,” the executive added.

Increased demand as well as fluctuations in local currency have had a strong effect on prices, according to market participants.

The Real lost almost 20% of its value from January to August, hitting its lowest level in almost five years of 2.45 Reais against the dollar on August 21. The currency has seen a recovery over the past month, rising to 2.19 Reais against the dollar on Friday November 1.

The average price in Brazil for scrap profile cuttings with a maximum of 2% of contaminants was 4,300 Reais per tonne, up 1.7% from September and an increase of 14.1% year-on-year.

The average price of scrap household foil and aluminium domestic items without other materials, such as wood or iron, was 4,230 Reais per tonne, up 1.4% month-on-month, and 10.2% higher year-on-year.

Used beverage can (UBC) briquettes were priced at 3,530 Reais per tonne, up 1.7% compared with the previous month and 9.6% higher than the same period a year ago.

Loose or baled UBC was trading at 3,370 Reais per tonne, up 1.2% from September and 13.9% higher year-on-year.

The average price of aluminium sheets and foil cuttings, painted or unpainted, with a maximum of 3% of impurities, was 3,720 Reais per tonne, up 0.5% month-on-month and 10.4% higher year-on-year.

The average price of compacted scrap without contaminants with a maximum of 2% of oils and lubricants was 3,170 Reais per tonne, down 0.6% month-on-month, and up 13.2% year-on-year.