Scrap recycling plants in Mexico’s northern, central and Bajío regions have struggled with a materials shortage since the year began, and prices are consequently rising.
Anticipating this month’s scrap shortage and price hikes, some recyclers started storing scrap last month, a source at recycling company Recicla SigloXX1, in Baijo and the country’s central area, told Davis Index.
A source at Rissa, which operates in the northern and Bajío regions, said the shortage is the only reason prices are rising so quickly.
Consumers have been raising the price due to lack of material, a source at Rissa, a recycling firm with operations in the north and Bajio regions said, adding that prices have risen faster than expected in January.
HMS 1&2 (80:20) prices in the Bajío region increased by 9.2pc in January to 5,300 pesos ($282.30) from 4,850 pesos in December, according to Recicla Centro, industrial recycling specialists with access to the Mexico’s most important steel mills. #1 Busheling also increased between December to January, by 2.8pc to 5,500 pesos.
Some Mexican mills, like long steel producer Deacero, have increased their prices this month, while at the same time absorbing important scrap volumes, which may be affecting other mills, market participants said.