Domestic scrap prices in Mexico were reported the week ended December 16 as HMS I at MXN 4,200-4,600/mt ($204-224/mt), shredded at MXN 4,500-4,700 ($219-229/mt), and P&S and busheling at MXN 4,500-5,000 ($219-243/mt), all prices delivered to mill. Lower range for Monterrey and higher level of range in El Bajío. The scrap prices had moved up through the first half of December.
According to market sources close to SteelOrbis, the market was expected to retain these price levels through the remainder of December as inventories at mills seemed sufficient and no surges in production were expected given upcoming holidays and planned mill outages. Yet, due to economic optimism that has gained momentum in the US and Mexican economies for first quarter 2017, the slight buildup of scrap inventories at lower prices as global scrap prices seem to moving up again in January, and the need to retain domestic scrap supplies within the Mexican borders as bids from the US and others could increase scrap exports, Mexican mills increased domestic prices on all scrap grades.
Domestic scrap prices in Mexico are now HMS I at MXN 4,400-4,800/mt ($212-231/mt), shredded at MXN 4,750-4,950/mt ($229-238/mt), and P&S and busheling at MXN 4,800-5,200/mt ($231-250/mt), all prices delivered to mill. Lower range for Monterrey and higher level of range in El Bajío. These prices reflect an increase of 200 on HMS I, 250 on shredded, 300 on the bottom end of the range of P&S and busheling while the top range increased 200 pesos.
$1=MXN 20.56, 12/15/2016
$1=MXN 20.76, 12/22/2016