Mexico’s domestic ferrous scrap prices increased by $5-30/mt depending on the region on Friday amid high demand and tight supply.
Scrap prices in the country’s Central and Bajío regions rose by $15/mt across all grades after the import prices for HMS 1&2 (80:20) cfr Turkey breached the $400/mt mark earlier this week.
Scrap prices in the northern region also increased as mills continued their struggle to collect material and were willing to pay higher rates to secure volumes. According to a market participant, mills’ demand for scrap could raise prices for some grades to as much as MXN9,000/mt ($448/mt) over the next few weeks.
On Friday, scrap prices in North Mexico rose by $10-12/mt and may climb further as one mill in this region continues applying increases of around MXN250/mt to secure supply for December 2020 and January 2021.
In North Mexico, the weekly Davis Indexes increased by MXN200/mt for machine shop turnings, P&S 5ft, shredded, and #1 busheling to MXN6,550/mt delivered Mexico consumer, MXN6,900/mt delivered, MXN7,600/mt delivered, and MXN7,900/mt delivered, respectively, on Friday. The index for HMS 1&2 (80:20) rose by MXN250/mt to MXN6,750/mt delivered Mexico consumer.
Scrap prices in the Bajío and Central regions climbed between $5-12.40/mt and $15-30/mt, respectively, during the week.
The weekly Davis Indexes in Bajío for HMS 1&2 (80:20) rose by MXN250/mt to MXN7,600/mt delivered Mexico consumer, P&S 5ft increased by MXN225/mt to MXN7,800/mt delivered, shredded climbed by MXN175/mt to MXN8,025/mt delivered, #1 busheling moved up by MXN100/mt to MXN7,925mt delivered, and machine shop turnings increased by MXN250/mt to MXN5,950/mt delivered.
In Central Mexico, the weekly Davis Indexes increased by MXN300/mt for #1 busheling, HMS 1&2 (80:20), and shredded to MXN7,650/mt delivered Mexico consumer, MXN7,650/mt delivered, and MXN8,000/mt delivered, respectively. The index for P&S 5ft increased by MXN500/mt to MXN7,750/mt delivered, and machine shop turnings climbed by MXN600/mt to MXN6,250/mt delivered Mexico consumer.