Sources inform SteelOrbis that as domestic Mexican steel sales are showing improvement, domestic scrap prices in Mexico are also showing positive movement.
Sources report that through the past month, prices have increased gradually on a weekly basis, especially shredded, surpassing busheling on limited supplies. Although, that position is not expected to remain long-term as busheling scrap is usually at a premium due to the high demand by the automotive and specialty industries such as machinery. A source noted that prices may remain stable for some time as demand and supply are coming into balance, the global scrap market has encountered a slight correction, and mills are likely to show resistance to additional increases given domestic and global steel market uncertainties as second quarter 2018 planning commences at various steel buying entities.
Domestic scrap prices in the northern Mexican region, which includes Monterrey, are reportedly at approximately MXN 6,100-6,300/mt ($324-335/mt) for busheling scrap, MXN 6,100-6,400/mt ($324-340/mt) for shredded scrap, MXN 6,000-6,300/mt ($319-335/mt) for P&S, and MXN 5,700-5,900/mt ($303-314/mt) for HMS I, all prices on a delivered to customer basis.
USD = MXN 18.81 (Feb. 8)