Mexico’s weekly domestic ferrous scrap prices increased on Friday as scrap collection remained low amid dwindling supply.
In Mexico’s northern region, the weekly Davis Index for HMS 1&2 (80:20) rose by MXN100/mt to MXN5,800/mt ($234.9/mt) delivered Mexico consumer on Friday. The index for machine shop turnings increased by MXN300/mt to MXN4,900/mt delivered and rose for #1busheling by MXN100 to MXN5,800/mt delivered. The index for P&S 5ft in the north increased by MXN100/mt to MXN5,700/mt delivered Mexico consumer.
The Davis Index in the Bajío region increased by MXN333/mt to MXN5,783/mt delivered Mexico consumer for HMS 1&2 (80:20), and rose by MXN375/mt to MXN5,000/mt delivered for machine shop turnings. The index for #1busheling rose by MXN325/mt to MXN5,950/mt delivered and moved up by MXN342/mt toMXN5,667/mt delivered for P&S 5ft.
In the central region, the index rose by MXN400/mt to MXN5,700/mt delivered Mexico consumer for HMS 1&2 (80:20) and by MXN400 to MXN4,900/mt delivered for machine shop turnings. The index for #1 busheling in Central Mexico fell by MXN400/mt to MXN5,800/mt delivered on Friday and declined by MXN400/mt to MXN5,800/mt delivered for P&S 5ft.
Market participants expect the lower scrap collection in the north, central, and the bajío region could result in material shortages this month. The suspension of activities from the automotive industry to protect employees from COVID-19, will also affect scrap demand.