The Latin American recycling industry is poised for growth. Still, a change in how public policies view the circular economy and unfair competition is needed, writes Davis Index’s Latin America analyst, Alfonso Garcia, in this article for Recycling Today.
The Latin American recycling industry is poised for growth. Still, a change in how public policies view the circular economy and unfair competition is needed, writes Davis Index’s Latin America analyst, Alfonso Garcia, in this article for Recycling Today.
Brazil and Nicaragua are two clear examples of these challenges in the region. Despite their difference in size, both primarily are agricultural countries with much legislative work needed to regulate and support the growth of the scrap metal sector.
The domestic scrap industry in both countries also is weighed down by logistics sector hurdles, especially in terms of freight costs and the availability of vessels for shipments. In fact, shipping fees in the region have increased by around 50 percent since the start of the COVID-19 pandemic.
South America exported 2.2 million metric tons of ferrous scrap in 2022 and imported 300,000 metric tons. Brazil exported 400,000 metric tons of ferrous scrap and did not register any imports in that time frame.
In Central America, exports of iron and steel waste and scrap were valued at $134.8 million last year, according to Trademap data. Among the Central American Common Market (CACM) countries, Nicaragua exported $22.3 million worth of these inputs.
Click here to read the full article that was first published in the Fall 2023 Scrap Recycling issue of the Recycling Today magazine.