Domestic ferrous scrap prices increased in Mexico as demand strengthened on improved output from the automotive and construction industries over the past few weeks.
Ferrous scrap prices in the North rose by 7pc from last week, and are expected to continue increasing in this region, a market participant told Davis Index.
In Northern Mexico, the weekly Davis Index for HMS 1&2 (80:20) rose by MXN172/mt to MXN 5,072/mt delivered Mexico consumer, while the index for P&S 5ft and #1 busheling climbed up by MXN189/mt and MXN200/mt to MXN5,589/mt delivered and MXN5,900/mt delivered, respectively. The index for shredded increased by MXN73/mt to MXN5,800/mt delivered.
Scrap prices in Bajío and Central also increased by around MXN200/mt ($9.09) as production in the regions’ automotive industries gained momentum, a market participant with operations in both regions told Davis Index.
The weekly Davis Index in Bajío for HMS 1&2 (80:20) increased by MXN225/mt to MXN5,400/mt delivered Mexico consumer and went up for machine shop turnings by MXN200/mt to MXN4,550/mt, delivered. The index for #1busheling and P&S 5ft rose by MXN275/mt and MXN150/mt to MXN5,400/mt delivered and MXN5,500/mt delivered, respectively. The index for shredded remained unchanged at MXN5,300/mt delivered.
In Central Mexico, the Davis Index for HMS 1&2 (80:20) climbed by MXN275/mt to MXN4,875/mt delivered Mexico consumer, and increased for machine shop turnings by MXN275/mt to MXN4,375/mt delivered. P&S 5ft and #1 busheling also moved up by MXN213/mt and MXN400/mt to MXN5,313/mt delivered and MXN5,300/mt delivered, respectively. The index for shredded remained unchanged at MXN5,200/mt delivered.