Brazil Paper Scrap Dealers End 2025 With Price Challenges And Regulatory Gains

Brazil's paper scrap dealers (aparistas) are closing 2025 facing atypical price declines that began in July-August and persist into year-end, a period historically seeing stronger pricing, amid ongoing low industry purchase prices representing just 50% of 2021 peaks. Despite slight 2024 demand recovery, the sector grapples with depressed prices, rising fixed costs, insufficient tax incentives, and surging imports of finished recycled papers like testliner that undercut local scrap demand despite ample domestic supply. Positive developments include pending government decrees on plastic and paper mandating minimum recycled content purchases by industry—potentially boosting scrap demand—and progress on PL 1.800/21 exempting recyclers from PIS/Cofins taxes, now approved by all House committees and sent to Senate after a 2021 STF ruling struck down prior benefits. Expectations also center on tax reform granting recycling preferential treatment and BNDES financing for modernization, alongside efforts to formalize waste pickers and improve collection systems for long-term viability.