Mexico’s domestic ferrous scrap prices rose further in the North and Bajío, on strength in demand but fell in the Central area.
Overall, prices are expected to fall by $40/mt in February, mirroring the anticipated fall in the US domestic ferrous scrap market. Thus, market participants expect prices to drop by MXN200-400/mt ($10-20/mt) in Central Mexico and by MXN200/mt in Bajío next week.
Market participants believe that supply has caught up with demand in these regions. Moreover, since there is enough scrap availability in the international markets, a market participant told Davis Index, national prices must drop, otherwise, mills would prefer the cheaper alternative of importing the scrap volumes they need.
In North Mexico, the weekly Davis Indexes for #1 HMS rose by MXN450/mt to MXN8,400/mt delivered Mexico consumer, P&S 5ft climbed by MXN800/mt to MXN9,200/mt delivered, shredded increased by MXN625/mt to MXN9,175/mt delivered, machine shop turnings rose by MXN825/mt to MXN8,425/mt delivered, and #1 busheling increased by MXN850/mt to MXN9,350/mt delivered.
In Bajío, the weekly Davis Indexes increased by MXN50/mt to MXN8,750/mt delivered Mexico consumer for #1 HMS, by MXN150/mt to MXN9,050/mt delivered for P&S 5ft, by MXN825/mt to MXN9,500/mt delivered for shredded, by MXN600/mt to MXN8,100/mt delivered for machine shop turnings, and by MXN460/mt at MXN9,150/mt delivered for #1 busheling.
In Central Mexico, the weekly Davis Indexes for four grades fell by MXN50/mt with #1 HMS settling at MXN8,700/mt delivered Mexico consumer, P&S 5ft reaching MXN8,850/mt delivered, shredded at MXN8,650/mt delivered, and machine shop turnings climbing down to MXN8,300/mt delivered. The index for #1 busheling fell by MXN150/mt to MXN8,900/mt delivered.