Mexico’s scrap prices in the domestic market decreased this week, but not by as much as mills would have liked. Prices fell by MXN200/mt for most grades in the Bajio region, and by MXN100-300/mt ($5.77-17.31/mt) in the Central region. In the North, they were unchanged. Participants in the scrap sector point to lower rebar demand, in part due to the rainy season affecting the Central and Bajio regions of the country. This has impacted rebar prices as they fell by MXN500/mt ($29/mt) in the last month after growing non-stop since November 2025 (another reason the Mexican scrap market had been strong).
The heavy rains make it difficult for the cement pouring at construction sites; additionally, contacts report that there are no significant new manufacturing and infrastructure projects in the country that could lift the market soon. The rainy season in Central Mexico, of course, has an end, though, even if it could extend well beyond the summer months.
In the Northern region of Mexico, prices remained unchanged at MXN7,900/mt ($456/mt) delivered consumer for #1 busheling, MXN6,000/mt ($346/mt) delivered for HMS I, MXN7,000/mt ($404/mt) delivered for P&S 5ft, MXN7,900/mt ($456/mt) delivered for shredded, and MXN5,100/mt ($294/mt) delivered for machine shop turnings (MST).
Mills started decreasing their prices last Friday; some decreased by MXN400/mt ($23/mt), and there were announcements for further drops this week. Sellers claim some mills have not followed through with their MXN400/mt ($23/mt) drops, but have only applied a MXN300/mt ($17.31/mt) decrease. Other mills, sellers claim, have not applied their announced reductions at all. So these types of inconsistencies are making sellers cautious.
Efforts to pressure down the market are still expected to continue, nevertheless. Other mills have told sellers they will follow the trend based on the need for lower scrap volumes. In the coming days, possible price decreases in Veracruz and even the Northern region are expected as prices in those regions have remained relatively high, compared with the recently contracted prices in the Central and Bajio regions.
Prices in Central region showed softness, with #1 busheling decreasing by MXN100/mt ($5.77/mt) to MXN7,200/mt ($416/mt) delivered consumer, HMS I fell by MXN300/mt ($17.31/mt) delivered consumer, P&S 5ft dropped by MXN100/mt ($5.77/mt) to MXN7,100/mt ($410/mt) delivered, shredded prices contracted by MXN200/mt ($11.5/mt) delivered, and MST fell by MXN300/mt ($17.31/mt) to MXN5,300/mt ($306/mt) delivered.
In Bajio, the price of #1 busheling decreased by MXN200/mt ($11.5/mt) to MXN7,600/mt ($438/mt) delivered consumer. HMS I fell in price also by MXN200/mt ($11.5/mt) to MXN6,600/mt ($381/mt) delivered, P&S 5ft remained unchanged at MXN6,600/mt ($381/mt) delivered after dropping by MXN800/mt ($46.1/mt). Shredded was also flat, in this case settling at MXN7,700/mt ($444/mt) and MST fell by MXN200/mt ($11.5/mt) to MXN5,800/mt ($335/mt).
