Mexico’s domestic ferrous scrap prices increased on strong demand in the Central and Bajío regions and were mixed in the North region on Friday.
Prices for secondary and prime grades are expected to increase by $20/mt and 30/mt, respectively, in the US domestic ferrous scrap market in May. These increases are likely to impact prices for those grades in Mexico too.
In the US, the dearth of #1 busheling has seen prices for this grade soar, with some US mills replacing it with shredded that is mixed with other scrap to make steel.
Scrap prices in Mexico have also risen by MXN100-150/mt ($4.94/mt) in the Central area, after Deacero, Mexico’s largest steelmaker, continued lifting its purchase prices for scrap.
In Central Mexico, the weekly Davis Indexes for #1 HMS and P&S 5ft rose by MXN100/mt to MXN9,600/mt delivered Mexico consumer and MXN10,050/mt delivered, respectively. Shredded climbed by MXN150/mt to MXN10,250/mt delivered and machine shop turnings increased by MXN50/mt to MXN9,000/mt delivered. The index for #1 busheling climbed by MXN300/mt to MXN10,650/mt delivered.
The weekly Davis Indexes in Bajío for #1 HMS and machine shop turnings climbed by MXN200/mt to MXN8,600/mt delivered and MXN7,750/mt delivered, respectively. For #1 busheling the index climbed by MXN400/mt to MXN11,000/mt. P&S 5ft and shredded were flat at MXN9,450/mt delivered, and MXN10,000/mt delivered, respectively.
In North Mexico, the weekly Davis Indexes for #1 busheling rose by MXN317/mt to MXN10,467/mt, shredded increased by MXN158/mt to MXN9,833/mt delivered, and P&S 5ft moved up by MXN115/mt to MXN9,966/mt delivered. The index for #1 HMS declined by MXN133/mt to MXN8,767/mt delivered and machine shop turnings fell by MXN342/mt to MXN8,158/mt delivered.