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Uruguay: supply higher, but demand yet to follow

My previous report mentioned how badly scrap supply and demand were performing in Uruguay, but thankfully the former has improved in 2023 to reach pre-pandemic levels. Unfortunately, the demand is not there yet - even though LME prices have risen over the last couple of months.

There are a number of issues confronting the country, including a lack of demand for hazardous items such as lead-acid batteries; with not many buyers and offers around, this creates a problem about what to do with the waste.

There has been a decline in the smuggling of scrap into Brazil because of the poor economic conditions in that country. This affects our industry in two ways: on the positive side, scrap is flowing into formal channels and companies; and on the negative side, Brazil is not buying much scrap despite being a developed industrial giant.