Mexico’s domestic ferrous scrap prices increased on Friday amid strong demand following China’s decision to eliminate the country’s import tax on billet.
Moreover, prices are expected to continue rising next week, after Deacero, Mexico’s largest steelmaker, continued raising its purchase prices for scrap. Mills are bidding aggressively for scrap amid limited material availability due to increased exports this month.
In North Mexico, the weekly Davis Index for #1 HMS climbed by MXN133/mt to MXN8,900/mt delivered Mexico consumer, P&S 5ft moved up by MXN217/mt to MXN10,183/mt delivered, shredded increased by MXN267/mt to MXN10,100/mt delivered, machine shop turnings rose by MXN142/mt to MXN8,300/mt delivered and #1 busheling climbed by MXN661/mt to MXN11,128/mt delivered.
The weekly Davis Indexes in Bajío for #1 HMS, shredded, and machine shop turnings climbed by MXN67/mt to MXN8,667/mt delivered, MXN10,067/mt delivered, and MXN7,817/mt delivered Mexico consumer, respectively. The index for #1busheling climbed by MXN33/mt to MXN11,033/mt delivered and P&S 5ft rose by MXN133/mt to MXN9,583/mt delivered.
In Central Mexico, the weekly Davis Indexes for all grades climbed by MXN200/mt with #1 HMS settling at MXN9,800/mt delivered Mexico consumer, P&S 5ft at MXN10,250/mt delivered, shredded at MXN10,450/mt delivered, machine shop turnings at MXN9,200/mt delivered and #1 busheling at MXN10,850/mt delivered.