Mexico’s domestic ferrous scrap prices rose further in the Bajío and Central regions amid a continuing trend of demand outpacing supply but remained unchanged in the North region.
A rise of another $10/mt is expected for scrap prices in both these regions next week, a market participant told Davis Index, adding that there is an acute shortage of prime scrap in the Central area.
Mexican scrap consumption is expected to increase by 15-20pc in H1 2021 after China announced plans to resume importing ferrous scrap. As a result, #1 busheling’s demand is expected to skyrocket with both Mexican and southern US mills competing to get scrap, a market participant with operations in North Mexico told Davis Index.
In Bajío, the weekly Davis Indexes for all grades rose by MXN200/mt with #1 HMS settling at MXN8,700/mt delivered Mexico consumer, P&S 5ft reaching MXN8,900/mt delivered, shredded at MXN8,675/mt delivered, and machine shop turnings increasing to MXN7,500/mt delivered. The index for #1 busheling rose by MXN215/mt to MXN8,690/mt delivered.
The weekly Davis Indexes in Central Mexico, rose by MXN200/mt for #1 HMS, P&S 5ft, shredded, and machine shop turnings to MXN8,750/mt delivered Mexico consumer, MXN8,900/mt delivered, MXN8,700/mt delivered, and MXN8,350/mt delivered, respectively. The weekly index for #1 busheling rose by MXN300/mt to MXN9,050/mt delivered.
In North Mexico, the weekly Davis Indexes for all grades remained unchanged. The index for #1 HMS held at MXN7,950/mt delivered Mexico consumer, P&S 5ft was flat at MXN8,400/mt delivered, shredded remained at MXN8,550/mt delivered, machine shop turnings settled unchanged at MXN7,600/mt delivered, and #1 busheling held at MXN8,500/mt delivered.