Ferrous scrap prices in Mexico's domestic market remained unchanged this week, as most buyers did not adjust their levels. Only a very few mills were seen raising their prices by MXN100/mt ($5.78/mt) in the Bajio region across all their grades, yet this did not impact the general market index.
Some contacts started commenting that some mills in the state of Veracruz wish to return to the market after being absent for a period. Sellers speculate that those buyers would need to improve their prices by MXN450/mt as they have lagged in pricing during their absence. Others believe their increases will be contingent on the amount of material they will need for the coming month. The move is not yet official, and it remains to be seen whether it will have repercussions for prices in other regions.
In Norte, some mills report they will make adjustments next week, yet all have remained unchanged for now. Some sellers in the region reported that some mills are being resistant to increases, especially in the state of Tamaulipas. The price for #1 busheling remained at MXN7,900/mt ($456/mt) delivered consumer, HMS I at MXN6,000/mt ($347/mt) delivered, P&S 5ft at MXN7,000/mt ($404/mt) delivered, shredded at MXN7,900/mt ($456/mt) delivered, and machine shop turnings (MST) at MXN5,100/mt.
Prices in Central Mexico were also flat this week with #1 busheling flat at MXN7,300/mt ($422/mt) delivered consumer, HMS I at MXN6,600/mt ($381/mt) delivered, P&S 5ft at MXN7,200/mt ($416/mt) delivered, shredded at MXN7,800/mt ($451/mt) delivered, and MST at MXN5,500/mt ($318/mt) delivered.
Mexican domestic prices, even though they are beholden to their local supply and demand trends, have also, in part, followed the calm in the US domestic market. For June, domestic prices in the US are expected to trend sideways across all regions as steel prices and the pig iron market have remained solid, while flows are reported as healthy but not generous.
In Bajio, the price of #1 busheling remained at MXN8,000/mt ($462/mt) delivered, HMS I at MXN7,000/mt ($404/mt) delivered, P&S 5ft at MXN7,400/mt ($428/mt) delivered, shredded at MXN8,000/mt ($462/mt) delivered, and MST at MXN6,100/mt ($352/mt) delivered.
