Mexico’s domestic ferrous scrap prices increased further in the Central and Bajío regions this week amid high demand and tight supply but trended flat for most grades in North Mexico.
Scrap prices across all grades are expected to rise by $50/mt in January in Mexico and $60/mt in the US, as demand outpaces scrap supply, market participants from the Central and Bajío regions told Davis Index, adding that mills are concerned as scrap prices may hike to MXN10,000/mt ($500/mt) over the next few weeks.
Mills in Central and Bajío continue their quest to collect material to meet strengthening demand from the automotive and white goods sectors.
In Central Mexico, the weekly Davis Indexes for HMS 1&2 (80:20) rose by MXN475/mt to MXN8,300/mt delivered Mexico consumer, P&S 5ft increased by MXN525/mt to MXN8,450/mt delivered, shredded climbed by MXN50/mt to MXN8,225/mt delivered, #1 busheling moved up by MXN675/mt to MXN8,500mt delivered, and machine shop turnings climbed by MXN1,113/mt to MXN7,538/mt delivered.
The weekly Davis Indexes in Bajío for HMS 1&2 (80:20) rose by MXN200/mt to MXN8,150/mt delivered Mexico consumer, P&S 5ft increased by MXN175/mt to MXN8,350/mt delivered, shredded climbed by MXN212/mt to MXN8,400/mt delivered, #1 busheling moved up by MXN275/mt to MXN8,500mt delivered, and machine shop turnings climbed by MXN800/mt to MXN7,350/mt delivered.
In North Mexico, the weekly Davis Indexes for HMS 1&2 (80:20), P&S 5ft and machine shop turnings remained unchanged at MXN7,400/mt delivered Mexico consumer, MXN7,800/mt delivered and MXN7,050/mt delivered, respectively. The index for #1 busheling fell by MXN125/mt to MXN7,875/mt delivered consumer and dropped for shredded by MXN100/mt to MXN8,000/mt delivered consumer.