Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Mexican scrap prices are expected to decline over the coming weeks because of the COVID-19 pandemic, market participants told Davis Index.


US scrap suppliers may temporarily quarantine, which would cause prices to decrease, said a raw material buyer who works for Tupy, located in the northern state of Coahuila. Tupy has an automotive plant with an annual production capacity of 216,000mt that focuses on engine blocks and heads.


He expects US scrap companies to cease activities for up to two weeks, adding that it would affect imports and exports. 


Some companies based in San Luis Potosi, a state in northeastern Mexico, announced lower scrap prices during recent weeks, said a trader with Recicla Siglo XX1, a scrap processing firm located in Guanajuato. Prices declined by MXN250/mt ($10.88/mt) on March 10, after falling by MXN200/mt on March 4, said the trader.


The COVID-19 pandemic is expected to affect the country for the next 12 weeks. It has already devalued the Mexican peso. Against the US dollar, it registers at MXN23.17 in international trading, according data from the central bank Banco de México.

Leave a Reply

Your email address will not be published.