Domestic ferrous scrap prices in Mexico increased for most grades in the North, Bajío, and Central areas as demand continued to rise across the country from the automotive and manufacturing sectors.
In North Mexico, the weekly Davis Indexes for HMS 1&2 (80:20) and P&S 5ft rose by MXN70/mt to MXN6,250/mt delivered Mexico consumer and MXN6,300/mt delivered, respectively. Machine shop turnings moved up by MXN46/mt to MXN6,050/mt delivered while shredded fell by MXN330/mt to MXN6,900/mt delivered on Friday and #1 busheling fell by MXN254/mt to MXN6,650/mt.
Prices in Mexico were expected to peak in October. However, the continued demand, especially from the automotive and construction industries, coupled with tighter flows has market participants in North Mexico anticipating increased prices, in Mexico as well as the US, in November as well.
The weekly Davis Indexes in Bajío for HMS 1&2 (80:20) rose by MXN142/mt to MXN6,300/mt delivered Mexico consumer, #1 busheling increased by MXN58/mt to MXN6,750/mt, P&S 5ft moved up by MXN108/mt to MXN6,250/mt delivered, machine shop turnings climbed by MXN225/mt to MXN5,700/mt delivered, and shredded rose by MXN125/mt to MXN6,350/mt delivered.
Scrap prices in Bajío and Central areas rose this week across all grades amid upward pressure due to high demand in the market, a market participant from these regions told Davis Index adding that prices will continue increasing in November due to high demand for steel in Mexico and the export sector.
In Central Mexico, the weekly Davis Index for HMS 1&2 (80:20) rose by MXN200/mt to MXN5,900/mt delivered Mexico consumer, P&S 5ft moved up by MXN125/mt to MXN6,350/mt, machine shop turnings increased by MXN275/mt to MXN4,650/mt delivered, shredded rose by MXN375/mt to MXN6,650/mt, and #1busheling increased by MXN125/mt to MXN6,350/mt.