Mexico’s scrap prices have increased in January and are expected to rise in February due to higher demand and lower supply of scrap in the Bajío region.
Ferrous scrap HMS 1&2 (80:20) prices are expected to rise by 14.2pc in February in the Bajío region at 6,000 Mexican pesos ($321.4), compared with 5,250 Mexican pesos ($281.2) recorded in January, Claudio Gonzalez, commercial manager at Recicla Centro, specialists in industrial recycling, with access to the most important steel mills in the country, told Davis Index.
In December 2019, HMS 1&2 (80:20) prices were about at 4,900 Mexican pesos ($262.5), added.
Lower scrap supply is due to there has been a lower collection of scrap in the Bajío region, which includes the Mexican states of Aguascalientes, Guanajuato, Querétaro and San Luis Potosí, where there is located mainly industries to supply the automotive sector, as well in the states of Michoacán and Jalisco.
Mexican steelmakers are developing this year more specialized steel products for several industries, which is boosting the scrap demand, he added.