Domestic ferrous scrap prices in Mexico rose for most grades due to higher demand from the automotive, manufacturing, and construction industries.
Prices are expected to continue rising in the North as demand strengthens. In October, recyclers could struggle to collect more scrap within a 400km-radius from Monterrey, a market participant with operations in North Mexico told Davis Index.
In North Mexico, the weekly Davis Index for most grades increased by MXN163/mt. HMS 1&2 (80:20) increased to MXN5,663/mt delivered Mexico consumer, machine shop turnings rose to MXN5,713/mt delivered, P&S 5ft rose to MXN 5,763/mt delivered and #1 busheling moved up to MXN6,513/mt delivered. The index for shredded increased further, rising by MXN164/mt to MXN6,800/mt delivered.
The weekly Davis Index in Bajío increased for HMS 1&2 (80:20) by MXN100/mt to MXN5,850/mt delivered Mexico consumer, for P&S 5ft by MXN150/mt to MXN5,950/mt delivered, for #1 busheling by MXN425/mt to MXN6,375/mt delivered, and for shredded by MXN416/mt to MXN6,950/mt delivered. However, the index for machine shop turnings decreased by MXN110/mt to MXN4,840 delivered.
In Central Mexico, the Davis Index for HMS 1&2 (80:20), P&S 5ft, and machine shop turnings rose by MXN25/mt to MXN5,375/mt delivered, MXN5,125/mt delivered, and MXN4,175/mt delivered, respectively. The index for shredded increased by MXN417/mt to MXN6,950/mt delivered Mexico consumer and #1 busheling rose by MXN45/mt to MXN6,125/mt delivered.