Mexico’s domestic ferrous scrap prices increased in the North and Bajío regions, in tandem with the US domestic ferrous scrap market’s price increases this week. However, scrap prices in the Central region remained unchanged.
Prices for prime grades such as #1 busheling increased by $70/mt while cut grades such as #1 HMS saw increases of $50/mt from February settled prices in the US this week.
Supply of materials such as #1 busheling is expected to tighten following the production cuts by automakers such as Chrysler and GM in Mexico due to the semiconductor chip shortage. Market participants believe that the limited supply could send #1 busheling prices soaring to MXN12,142-12,782/mt ($570-600/mt).
In North Mexico, the weekly Davis Index for #1 HMS, P&S 5ft, shredded, and machine shop turnings rose by MXN266/mt to MXN8,516/mt delivered Mexico consumer, MXN9,466/mt delivered, MXN9,416/mt delivered, and MXN8,066/mt delivered, respectively. The index for #1 busheling rose by MXN373/mt to MXN9,873/mt delivered.
The weekly Davis Indexes in Bajío for #1 HMS, P&S 5ft, shredded, and machine shop turnings rose by MXN266/mt to MXN8,516/mt delivered Mexico consumer, MXN8,966/mt delivered, MXN9,466/mt delivered, and MXN7,416/mt delivered, respectively. The index for #1 busheling rose by MXN373/mt to MXN9,473/mt delivered.
In Central Mexico, the weekly Davis Indexes for all grades remained unchanged with #1 HMS at MXN7,860/mt delivered Mexico consumer, P&S 5ft flat at MXN8,010/mt delivered, shredded remaining unchanged at MXN7,810/mt delivered, machine shop turnings holding at MXN7,460/mt delivered, and #1 busheling flat at MXN8,060/mt delivered.