Domestic ferrous scrap prices in Mexico increased for most grades across the country amid strengthening demand for scrap from automotive and manufacturing sectors in the Central and Bajío regions.
However, a market participant told Davis Index that scrap import volumes could get impacted due to a depreciation of the Mexican peso against the US dollar, though that would depend on the results of the US presidential election.
In North Mexico, the weekly Davis Indexes for HMS 1&2 (80:20), P&S 5ft, and shredded rose by MXN50/mt to MXN6,300/mt delivered Mexico consumer, MXN6,350/mt delivered, and MXN6,950/mt delivered, respectively. The index for #1 busheling climbed by MXN300/mt to MXN6,950/mt, while machine shop turnings were flat MXN6,050/mt.
The weekly Davis Indexes in Bajío for HMS 1&2 (80:20) and shredded rose by MXN25/mt to MXN6,325/mt delivered Mexico consumer, and MXN6,375/mt, respectively, while #1 busheling climbed by MXN300/mt to MXN7,050/mt delivered. On the other hand, the indexes for P&S 5ft and machine shop turnings remained unchanged at MXN6,250mt delivered, and MXN5,700/mt delivered.
Scrap prices in Bajío and Central areas climbed this week across most of the grades amid high demand in the market, according to a market participant from a mill in these regions, who added that prices of HMS 1&2 (80:20) in Central area may rise further as demand strengthens and supply of the grade remains tight.
In Central Mexico, the weekly Davis Indexes for P&S 5ft, machine shop turnings, and #1busheling increased by MXN100/mt to MXN6,450/mt delivered Mexico consumer, MXN4,750/mt delivered, and MXN6,450/mt delivered, respectively. HMS 1&2 (80:20) rose by MXN150/mt to MXN6,050mt delivered Mexico consumer, and shredded climbed by MXN200/mt to MXN6,850/mt.