Domestic ferrous scrap prices fell in Mexico’s Central region on Friday as supply outpaced demand.
Scrap prices in the North have been flat, however, they are expected to fall over the next few weeks, according to some market participants. In fact, one of them told Davis Index that mills and recyclers are competing over getting their hands on material, which remains in short supply.
On the other hand, some scrap dealers from the Bajío and Central regions expect #1busheling prices to fall in July as production has exceeded demand.
In Northern Mexico, the weekly Davis Index for HMS 1&2 (80:20) remained unchanged at MXN5,300/mt ($235,7/mt) delivered Mexico consumer on Friday. The index for machine shop turnings fell by MXN50/mt to MXN4,450/mt delivered but increased by MXN200/mt for #1busheling to MXN5,950/mt delivered. The index for P&S 5ft fell by MXN50/mt to MXN5,500/mt delivered Mexico consumer, and the index for shredded fell by MXN150/mt to MXN5,400/mt delivered.
The weekly Davis Index in Bajío increased by MXN25/mt to MXN5,350/mt delivered Mexico consumer for HMS 1&2 (80:20), and went up by MXN40 to MXN4,500/mt for machine shop turnings. The index for #1 busheling and shredded fell by MXN375 and MXN100/mt to MXN 5,150/mt delivered and MXN5,400/mt delivered, respectively, but rose by MXN150/mt to MXN5,450/mt delivered for P&S 5ft.
In Central Mexico, the Davis Index for HMS 1&2 (80:20) and machine shop turnings fell by MXN250/mt and MXN225/mt to MXN4,650/mt delivered, and MXN4,000/mt, respectively. The index for #1 busheling in the region increased by MXN50/mt to MXN5,575/mt delivered on Friday. The Davis Index for P&S 5ft and shredded decreased by MXN300/mt and MXN100/mt to MXN5,000/mt delivered and MXN5,200/mt delivered, respectively.
($1= MXN22.49)