On February 9, SteelOrbis reported domestic scrap prices in the northern Mexican region, which includes Monterrey, as trending strong on domestic demand and support from global scrap prices.
Sources inform SteelOrbis that with continued strong domestic demand for scrap, competition in the export market firming up prices for US sources imports to Mexico, and a slightly stronger peso, “late February and March prices are expected to trend toward the higher side of the ranges established in early February.”
Prices are now approximately MXN 6,150-6,300/mt ($330-338/mt) for busheling scrap, MXN 6,150-6,400/mt ($330-343/mt) for shredded scrap, MXN 6,050-6,300/mt ($325-338/mt) for P&S, and MXN 5,750-5,900/mt ($308-317/mt) for HMS I, all prices on a delivered to customer basis.
Due to currency fluctuations, the domestically stable upper end of the range increased by $3/mt while the bottom of the previous range increased MXN 50/mt or $6/mt across most grades, except P&S which increased $5/mt.
A source stated, “Due to uncertainty per the latest tariff rhetoric from the US, it is hard to see prices jumping above present levels in H2 2018.” He added that the Mexican scrap market usually lags behind US domestic scrap market results and that the realization of sideways pricing in the early March US scrap buy-cycle would help keep Mexican prices trending relatively stable through March.
USD = MXN 18.81 (Feb. 8)
USD = MXN 18.64 (Feb 22)