Mexico’s domestic ferrous scrap prices increased in the Bajío and Central regions on Friday after the US domestic market settled at up $50-70/gt earlier in the week.
Prices for prime grades such as #1 busheling increased by $70/gt in the US while cut grades such as #1 HMS rose by $50/gt from February settled prices.
The Mexican scrap industry, which is the main supplier for the country’s automotive sector, is concerned about the repercussions of the 30pc decline in vehicle production over the past two months on scrap supply and demand. Car output was at 238,868 units in February, down from 335,708 cars produced in February 2020.
The shortage in #1 busheling is also expected to continue, according to market participants.
In Central Mexico, the weekly Davis Indexes for shredded and machine shop turnings rose by MXN250/mt to MXN8,060/mt and MXN7,710/mt delivered to Mexico consumer, respectively. The index for #1 busheling increased by MXN340/mt to MXN8,400/mt delivered while P&S 5ft climbed by MXN240/mt to MXN8,250/mt delivered. The index for #1 HMS, however, fell by MXN60/mt to MXN7,800/mt delivered Mexico consumer.
The weekly Davis Indexes in Bajío for #1 HMS, shredded, and machine shop turnings rose by MXN204/mt to MXN8,720/mt delivered Mexico consumer, MXN9,670/mt delivered, and MXN7,620/mt delivered, respectively. The index for #1 busheling increased by MXN197/mt to MXN9,670/mt delivered and P&S 5ft remained unchanged at MXN8,966/mt.
In North Mexico, the weekly Davis Indexes remained unchanged at MXN8,516/mt delivered Mexico consumer for #1 HMS, MXN9,466/mt delivered for P&S 5ft, MXN9,416/mt delivered for shredded, MXN8,066/mt delivered for machine shop turnings, and MXN9,873/mt delivered for #1 busheling.