Mexico’s domestic ferrous scrap prices increased further in the North and Central regions amid a continuing trend of robust demand and limited supply.
Scrap prices across all grades are expected to rise by $50/mt on January 6, 2021, as mills continue their quest to collect material to meet strengthening demand from the automotive and white goods sectors, market participants told Davis Index.
In the Central region, scrap prices have increased in the range of $5-10/mt as mills continued to struggle with material collections. This issue should get resolved by the end of next month when at least seven vessels are slated to arrive from the US at Veracruz port with shredded scrap at $500/mt cfr. This is in addition to the 12 vessels that arrived from the US to Mexico in December to meet mill demand.
The January shipment is expected to meet the scrap demand of a long and flat steelmaker as well as a pipe producer according to market participants.
In North Mexico, the weekly Davis Indexes for #1 HMS, shredded, and machine shop turnings rose by MXN200/mt to MXN7,600/mt delivered Mexico consumer, MXN8,200/mt delivered consumer, and MXN7,250/mt, respectively. The index for P&S 5ft rose by MXN250/mt to MXN8,050/mt delivered and increased by MXN275/mt to MXN8,150/mt delivered for #1 busheling.
In Central Mexico, the weekly Davis Indexes for #1 HMS, P&S 5ft, and #1 busheling increased by MX150/mt to MXN8,450/mt delivered Mexico consumer, MXN8,600/mt delivered, and MXN8,650/mt delivered, respectively. The indexes for machine shop turnings climbed by MXN512/mt to MXN8,050/mt delivered and rose for shredded by MXN175/mt to MXN8,400/mt delivered.
The weekly Davis Indexes in Bajío for #1 HMS and P&S 5ft increased by MXN200/mt to MXN8,350/mt delivered, and to MXN8,550/mt delivered, respectively. The index for shredded was flat at MXN8,400/mt delivered. The index for #1 busheling fell by MXN450/mt to MXN8,050mt delivered, while machine shop turnings decreased by MXN75/mt to MXN7,275/mt delivered.