2025 Bolivia Steel Scrap Export: Market Collapse

Bolivia Steel Scrap Export Key Takeaways

Steel Scrap, classified under HS Code 7204, suffered extreme volatility and structural fragility from January to December 2025.

• Market Pulse (Trend): Export value swung from $9.1M (April) to $2.2M (June), collapsing -63% MoM in December. Weight plummeted -65% the same month, signaling severe supply chain instability.
• Structural Pivot (Geography/Company): Bolivia Steel Scrap Export relies on a Peruvian monopsony (90.12% value share), with Corporación Aceros Arequipa S.A. and Export Global Metals Inc. controlling 98.5% of buyer value.
• Grade Analysis (HS Code): HS Code 7204 trade data confirms a bulk commodity play—95% of exports are low-grade ferrous scrap ($0.68/kg), with negligible high-value sub-codes.

This overview covers the period from January to December 2025 and is based on verified customs data from the yTrade database.

Expert Note: A Monoculture Market on the Brink

Expert Commentary: Bolivia’s scrap trade is a textbook case of high-risk dependency—Peru’s demand props up margins, but one contract rupture or logistics snarl could crater the entire export economy. The absence of product diversification or buyer redundancy suggests systemic fragility, not strategic discipline.

Strategic Action Plan

• Diversify buyer base: Target transactional buyers in China Taiwan (5.2% quantity share) to reduce reliance on Peru’s monopsony, despite lower margins.
• Hedge Q1 2026 shipments: Bolivia’s erratic tonnage flow and December collapse demand financial protection against further volatility.
• Audit logistics partners: Internal transport bottlenecks are likely culprits for wild swings; secure backup carriers or storage hubs.
• Monitor Mercosur industrial output: Brazilian/Argentine demand shifts could further destabilize Bolivia’s already fragile export volume.
• Optimize for bulk efficiency: With 95% of exports being low-grade, prioritize scale logistics (rail/port throughput) over product refinement.

Bolivia's Scrap Export Volatility Signals Structural Supply Chain Stress

Erratic 2025 Performance Undermines Market Confidence

• Bolivia's Steel Scrap Export trend saw extreme volatility throughout 2025, with total value swinging from a $9.1M peak in April to a $2.2M trough in June before a partial recovery collapsed into a severe December contraction of -63% MoM. Export weight mirrored this instability, plummeting -65% in December after a November retreat of -8%.
• This erratic performance indicates profound supply chain fragmentation, likely driven by internal logistics bottlenecks or inconsistent smelter demand. The inability to sustain volume despite price recoveries suggests Bolivia's export infrastructure lacks the maturity to capitalize on regional scrap shortages.

Domestic Logistics Overhang and Mercosur Integration Gaps

• While no direct policy shocks targeted Bolivia’s hs code 7204 value in 2025, the data’s whipsaw movements align with infrastructural deficits common in associate Mercosur members. The December collapse may reflect inventory drawdowns ahead of seasonal transport disruptions or credit constraints.
• Actionable Intelligence:
• Scrap traders should hedge Q1 2026 shipments against continued volatility, as Bolivia’s internal logistics cannot guarantee steady volume.
• Monitor Brazilian and Argentine industrial output for secondary demand shifts; a regional slowdown would exacerbate Bolivia’s export fragility.
• Secure alternative suppliers in Paraguay or Uruguay to mitigate Bolivia’s unreliable tonnage flow.

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Table: Bolivia Steel Scrap Export Trend (Source: yTrade)

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Scrap Market Dominated by Bulk Commodity Exports

Market Composition Heavily Skewed to General Waste

• Insight-First Summary: Sub-code 7204490000 ("Ferrous waste and scrap; n.e.c.") is the dominant force, capturing over 95% of total export value and 75% of the volume.
• Citation: According to yTrade data, this single category represents nearly the entirety of Bolivia's ferrous scrap export profile for the full year 2025.
• Analysis: This extreme concentration reveals a top-heavy, undiversified supply chain. Bolivia's export flow for HS Code 7204 is effectively a bulk commodity operation, reliant on a single, low-grade category of material. The market structure is not fragmented; it is monolithic, built on volume, not variety.

Pricing Confirms a Low-Value, Bulk Commodity Flow

• Value Chain Verdict: The unit price of the dominant sub-code is $0.68/kg, definitively categorizing this as a low-margin commodity market driven by tonnage, not technical specification.
• Strategic Insight: The HS Code 7204 breakdown shows Bolivia is exporting raw, unprocessed bulk scrap. The handful of higher-priced sub-codes (e.g., cast iron at $12.45/kg) are statistically irrelevant curiosities, not a meaningful part of the value chain.
• Information Increment: The data confirms this trade is about moving weight. The high-volume, low-price reality means margins are thin and entirely dependent on logistics efficiency and global bulk scrap pricing, not product quality or specialization.

Table: Bolivia HS Code 7204) Export Breakdown Details (Source: yTrade)

Check Detailed HS Code 7204 Breakdown

Bolivia's Steel Scrap Exports Centered on High-Margin Peruvian Monopsony

Is Market Concentration a Strategic Vulnerability?

• Bolivia's Steel Scrap exports show extreme dependence on Peru, which holds 90.12% value share, classifying it as a high-risk market monopsony. No re-imports or self-exports are present, confirming all flows represent actual foreign consumption. This concentration exposes Bolivia to significant supply chain instability from single-partner reliance.

What Drives the Demand: Premium Quality or Bulk Commodity?

• Peru's high unit price of approximately $0.73/kg signals quality-conscious, high-margin demand for Steel Scrap. Conversely, markets like China Taiwan exhibit commodity behavior with unit prices around $0.014/kg, indicating price-sensitive bulk processing. The export profile favors margin potential through Peru's dominance, outweighing volume scale from other partners.

Table: Bolivia Steel Scrap (HS Code 7204) Top Destination Countries (Source: yTrade)

Get Bolivia Steel Scrap (HS Code 7204) Complete Destination Countries Profile

Bolivia’s Steel Scrap Market Is Dominated by a Handful of Strategic Contract Partners

Buyer Concentration & Market Structure

According to yTrade data, the Bolivia Steel Scrap buyers are primarily defined by Key Accounts—firms like Corporación Aceros Arequipa S.A. and Export Global Metals Inc. This segment represents 93.6% of transaction frequency and 98.5% of total value, indicating a hyper-concentrated, contract-driven supply chain. The market operates on stable, high-volume agreements rather than fragmented spot trading.

Purchasing Behavior & Sales Strategy

Sellers must prioritize relationship management with these dominant buyers, as losing one could collapse export revenue. Diversifying into transactional buyers (5.2% quantity share) offers limited upside but reduces dependency risk. Given the absence of disruptive policy shifts in 2025, competitors should focus on pricing consistency and logistical reliability to secure long-term contracts.

Table: Bolivia Steel Scrap (HS Code 7204) Top Buyers List (Source: yTrade)

Check Full Bolivia Steel Scrap Buyers list

Frequently Asked Questions

Q1. What is driving the recent changes in Bolivia Steel Scrap Export in 2025?

Bolivia's Steel Scrap exports experienced extreme volatility in 2025, with value swings from $9.1M to $2.2M, driven by supply chain fragmentation and logistical bottlenecks. The December collapse (-63% MoM) highlights structural instability in export infrastructure.

Q2. Who are the main destination countries of Bolivia Steel Scrap (HS Code 7204) in 2025?

Peru dominates Bolivia's Steel Scrap exports, capturing 90.12% of total value. Other markets like China Taiwan are marginal, with minimal volume and significantly lower unit prices.

Q3. Why does the unit price differ across destination countries of Bolivia Steel Scrap Export in 2025?

Peru pays a premium ($0.73/kg) for quality-conscious demand, while markets like China Taiwan treat it as a bulk commodity ($0.014/kg). The price gap reflects Peru's focus on higher-margin material versus low-value processing elsewhere.

Q4. What should exporters in Bolivia focus on in the current Steel Scrap export market?

Exporters must prioritize long-term contracts with key buyers like Corporación Aceros Arequipa S.A., which account for 98.5% of value. Diversifying into transactional buyers offers limited risk mitigation but cannot replace core relationships.

Q5. What does this Bolivia Steel Scrap export pattern mean for buyers in partner countries?

Peruvian buyers benefit from stable, high-margin supply, but over-reliance on Bolivia exposes them to volatility. Other markets face minimal impact due to Bolivia's negligible volume share outside Peru.

Q6. How is Steel Scrap typically used in this trade flow?

Bolivia's exports are dominated by unprocessed bulk ferrous scrap (95% of value), primarily used as raw material in smelting and low-grade steel production, not specialized manufacturing.