Mexico’s domestic ferrous scrap prices increased in the Central and Northern regions on Friday but were mixed in Bajío.
Market participants in the Central area believe scrap prices in the region rose after Deacero, Mexico’s largest steelmaker, hiked scrap prices by $5/mt every day over the past week to a total increase of $25/mt.
Prices for obsolete grades are expected to fall by $20-30/mt in the US domestic ferrous scrap market in April, which would impact those grades’ prices in Mexico too. International prices may fall during Ramadan, which falls between Apr 13 and May 12, as Turkey could stop pushing prices up, a market participant said.
In Central Mexico, the weekly Davis Indexes for all grades rose by MXN500/mt, with #1 HMS at MXN8,700/mt delivered Mexico consumer, P&S 5ft at MXN9,150/mt delivered, shredded at MXN9,300/mt delivered, machine shop turnings at MXN8,600/mt delivered, and #1 busheling at MXN9,400/mt delivered.
In North Mexico, the weekly Davis Indexes for #1 HMS rose by MXN23/mt to MXN8,483/mt delivered, P&S 5ft increased by MXN33/mt to MXN9,683/mt and shredded rose by MXN17/mt to MXN9,617/mt delivered Mexico consumer. The index for machine shop turnings declined by MXN178/mt to MXN7,892/mt delivered, and #1 busheling dropped by MXN361/mt to MXN9,964/mt delivered.
The weekly Davis Indexes in Bajío for #1 HMS fell by MXN420/mt to MXN8,600/mt delivered, P&S 5ft declined by MXN395/mt to MXN8,875/mt delivered, while shredded and machine shop turnings remained unchanged at MXN9,970/mt and MXN7,920/mt delivered Mexico consumer. The index for #1 busheling, however, rose by MXN50/mt to MXN9,650/mt delivered.
($1=MXN20.31)