Mexico’s domestic ferrous scrap prices increased across the three regions this week on strong demand and tight supply as some vendors sought to make volumes available to the export market.
Like the US, Mexican mills are also running on long lead times and firm prices on orders. Customers include domestic fabricators and firms producing components and finished steel products bound for the US market.
Last week, market participants reported an expectation of $30/gt increases in June in the Texas region against May settled prices. From initial reports, some dealers only gained $20-25/gt at some mills while others, especially those close to Houston, given the export factor, are trading at higher prices.
The US national increase in trading that began on Jun 3 is $50/gt on secondary grades such as #1 HMS, P&S 5ft, and shredded while prime grades such as #1 busheling increased by $50-60/gt, against the May settled prices. Some sellers have committed all volumes while others expect to settle by Monday.
The US-origin HMS 1&2 (80:20) index was rangebound on an increase of $0.19/mt to $502.50/mt cfr Turkey on Friday against May 28. The increase remains at over $50/mt against May 3.
Ferrous buyers in Mexico note an interest in engaging more relationships in the US market for scrap sourcing as the demand outlook will continue in H2 2021 alongside tight domestic scrap inventories.
The weekly Davis Index in North Mexico for #1 busheling rose by MXN213 to MXN10,738/mt ($538/mt) delivered while P&S 5ft climbed by MXN188/mt to MXN10,313/mt delivered and #1 HMS increased by MXN207/mt to MXN9,088/mt. Shredded ticked up by MXN54/mt to MXN10,217/mt. Machine shop turnings jumped up by MXN365/mt to MXN8,640/mt delivered.
Davis Indexes in Bajío rose or trended sideways with #1 busheling remaining flat at MXN11,013/mt delivered alongside an unchanged trend on machine shop turnings at MXN8,138/mt delivered. The index for #1 HMS rose by MXN304/mt to MXN9,067/mt delivered and shredded climbed by MXN112/mt to MXN10,300/mt. P&S 5ft encountered a limited increase of MXN33/mt to MXN9,933/mt delivered.
In Central Mexico, most weekly Davis Indexes increased this week after holding unchanged in the previous week with #1HMS rising by MXN300/mt to MXN10,350/mt, P&S5ft climbing by MXN225/mt to MXN10,750/mt, shredded growing by MXN200/mt to MXY10,900/mt and #1busheling increasing by MXN187/mt to MXN11,200/mt delivered. Machine turnings continued unchanged at MXN9,350/mt delivered.