Domestic ferrous scrap prices were flat across all three regions in Mexico this week. However, the ferrous scrap market on both sides of the border expects mills to increase their pricing for the September trade.
In Northern Mexico, the weekly Davis Index for HMS 1&2 (80:20) was flat at MXN4,900/mt delivered Mexico consumer, along with the indexes for P&S 5ft and #1 busheling, which remained unchanged at MXN5,400/mt delivered and MXN5,700/mt delivered, respectively. The index for shredded held at MXN5,727/mt delivered.
The weekly Davis Index in Bajío for HMS 1&2 (80:20) was unchanged at MXN5,175/mt delivered Mexico consumer and machine shop turnings held at MXN4,350/mt, delivered. The index for #1busheling and P&S 5ft also leveled off at MXN5,125/mt delivered and MXN5,350/mt delivered, respectively, while shredded remained unchanged at MXN5,300/mt delivered.
Market participants with operations in the North and the Bajío region told Davis Index that they expect higher scrap prices as the September trade approaches and EAF mill are running at a 75-80pc utilization rate, creating more demand for scrap. A push back from mills is also expected considering that the price of finished HRC is currently below $500/nt.
In Central Mexico, the Davis Index for all scrap grades remained unchanged too. HMS 1&2 (80:20) remained at MXN4,600/mt delivered Mexico consumer, while machine shop turnings held at MXN4,100/mt delivered. The index for P&S 5ft was flat at MXN5,100/mt and remained unchanged at MXN4,900/mt for both #1 busheling and shredded.
($1=MXN22.39)