Mexico’s domestic ferrous scrap market trended sideways this week in the Northern, Central, and Bajio regions, despite reported increases in the state of Veracruz. Contacts mention that the particular market dynamics of each region have kept their trends independent from the changes in Veracruz. Last week, it was reported that one of the mills in that state wished to return to the market and increased their prices across the board in MXN400-450/mt ($23-26/mt) across the board in order to catch up with their competitors who had increased their prices during the time they were absent.
In the Northern region of Mexico, prices remained unchanged at MXN7,900/mt ($455/mt) delivered consumer for #1 busheling, MXN6,000/mt ($346/mt) delivered for HMS I, MXN7,000/mt ($403/mt) delivered for P&S 5ft, MXN7,900/mt ($455/mt) delivered for shredded, and MXN5,100/mt ($294/mt) delivered for machine shop turnings (MST).
Prices were also stable in the Central region, with MXN7,300/mt ($421/mt) delivered consumer for #1 busheling, MXN6,600/mt ($380/mt) delivered for HMS I, MXN7,200/mt ($415/mt) delivered for P&S 5ft, MXN7,800/mt ($450/mt) delivered for shredded, and MXN5,500/mt ($317/mt) delivered for machine shop turnings (MST).
Participants in Mexico attribute stability in the Northern, Central, and Bajio regions to stable demand from mills, which has fostered price competitiveness among mills. Steel production is reported as stable, and minerals production, like iron pellets, grew annually by 9.3 percent in March to 384,029mt from 351,397mt the previous year, according to the National Statistics and Geography Institute (INEGI).
According to INEGI, the manufacturing sector, which includes auto production, has remained somewhat stable, falling by 1 percent annually in March. Offsetting a more pronounced annual decrease of 6 percent in the construction sector.
In Bajio, the hub of the automotive sector in Mexico, prices remained unchanged at MXN8,000/mt ($461/mt) delivered consumer for #1 busheling, MXN7,000/mt ($403/mt) delivered for HMS I, MXN7,400/mt ($426/mt) delivered for P&S 5ft, MXN8,000/mt ($461/mt) delivered for shredded, and MXN6,100/mt ($352/mt) delivered for machine shop turnings (MST).
