Mexico’s domestic ferrous scrap prices increased on strong demand across all three regions on Friday.
Prices are expected to increase by MXN200/mt ($10/mt) in Bajío over the next few days, and MXN100/mt in the Central area, as Deacero, Mexico’s largest steelmaker continues lifting its purchase prices for scrap. Prices for #1 busheling, especially, are slated to rise further in Mexico following limited availability of the grade and strong demand.
Scrap prices in Mexico have risen to levels where mills are finding it cheaper to import scrap compared to sourcing it in the domestic market. Davis Index has heard that a Northern Mexican mill imported P&S 5ft and shredded scrap in the first quarter and saved around 20pc in costs compared to purchasing in the high-priced domestic scrap market.
In North Mexico, the weekly Davis Indexes for #1 HMS rose by MXN275/mt to MXN8,900/mt delivered, shredded increased by MXN50/mt to MXN9,675/mt delivered, machine shop turnings climbed by MXN267/mt to MXN8,500/mt delivered, and #1 busheling went up by MXN75/mt to MXN10,150/mt. The index for P&S 5ft fell by MXN52/mt to MXN9,851/mt.
The weekly Davis Indexes in Bajío for #1 busheling and shredded climbed by MXN300/mt to MXN10,600/mt and MXN10,000/mt delivered to Mexico consumer, respectively. The index for #1 HMS rose by MXN200/mt to MXN8,400/mt delivered, P&S 5ft climbed by MXN100/mt to MXN9,450/mt delivered, and machine shop turnings increased by MXN75/mt to MXN7,550/mt delivered.
In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, and shredded rose by MXN200/mt to MXN9,500/mt delivered Mexico consumer, MXN9,950/mt delivered, and MXN10,100/mt delivered, respectively. Machine shop turnings increased by MXN100/mt to MXN8,950/mt delivered and #1 busheling climbed by MXN300/mt to MXN10,350/mt delivered.