HRC and CRC prices in Mexico moved down in October along with the price declines experienced in the US. Mexico is a top export destination for ex-US HRC and the high volumes exported, especially, given the dampened demand in the US market, put pressure on Mexican mills to adjust domestic prices downward.
According to sources close to SteelOrbis, Mexican HRC for November deliveries is ranging at MXN 8,600-9,000/mt ($463-484/mt) and CRC at MXN 12,000-12,500 ($646-673/mt), both FOB mill.
At the end of September, we reported prices for October deliveries at MXN 10,500-10,800/mt ($542-557/mt) and CRC at MXN 12,600-12,800 ($650-661/mt), both FOB mill.
Mexican HRC encountered the largest dip in prices with a domestic value loss at the base of the price range of 18 percent while CRC decreased almost 5 percent. In the same three week time frame, US ex-mill Midwest prices eroded approximately 20 percent on HRC and 10 percent on CRC. In dollar terms, as the Mexican peso encountered some devaluation against the dollar in the last four weeks but has now returned to its summer values, domestic Mexican HRC prices declined approximately 15 percent while CRC only declined less than 1 percent.
Given the international upward price moves, a source close to SteelOrbis noted, “Prices have begun going up some since last week as domestic scrap prices moved up and international prices seem to be trending up, but much depends on where prices go in the US in the next two weeks.” US Flats prices are pointing to an increase per recent announcements. Offer prices are expected to increase on both sides of the border over the week.
$1=MXN 18.58
$1=MXN 19.379 (at 9/28/2016)