Brazil: aluminium the positive highlight

Brazil’s recycling landscape is showing a clear division between ferrous and non-ferrous metals.

In the ferrous segment, the country is maintaining a significant scale of steel scrap recycling. However, it still faces an important short-term challenge: low domestic steel industry absorption led to record ferrous scrap exports in 2025 and to their continued growth in the first quarter of 2026.

In the non-ferrous segment, aluminium is the positive highlight as Brazil combines growing consumption, high scrap recovery rates and global leadership in can recycling. In copper, meanwhile, international price appreciation is creating commercial opportunities but also increasing the need for traceability, document control and operational security.

The main cross-cutting change in 2026 is regulatory and tax-related: Law No. 15,394/2026 strengthened PIS/Pasep and Cofins credits for the acquisition of certain recyclable materials. It reinstated the tax exemption on the sale of specified waste and scrap, including iron, steel, copper, aluminium, lead, zinc, tin and other metal waste. In practical terms, the regulation tends to favour formalised operations with tax documentation, correct material classification and proof of origin.