Scrap scarcity hurting metallurgic companies

Paraguay's metallurgic industry has been negatively affected by the lack of scrap it uses as raw material due to uncontrolled exports to Brazil, local daily La Nación reported. Scrap is being exported in large volumes to Brazil, where pricing is much higher, thereby causing supply problems in the domestic market and specifically for the metal smelter industry, the newspaper said. Although some sector companies have agreements with scrap exporters to ensure a minimal supply for operations, "the quantity of raw material that leaves [the country] is five times more than what stays," the newspaper said. If large-scale scrap exports continue, local industry will be affected and the sector will lose competitiveness, eventually being removed from the market, metallurgic industry association Cime president Felipe Aghemo said. There are no problems with the supply of iron, the executive was quoted as saying.