Domestic scrap prices in Mexico in the week of December 2 were reported as HMS I at MXN 3700-4100/mt ($179-199/mt), shredded at MXN 4,000-4,200 ($194-204/mt), and P&S and busheling at MXN 3950-4,550 ($191-221/mt), all prices delivered to mill. Prices had been relatively quiet with limited fluctuations through November.
In early December, scrap prices began increasing in the Monterrey area as El Bajío (Northern-Central Mexico) prices were drawing inventory out of the Monterrey area. Mills in Monterrey increased prices to retain local scrap supply sources. With strong domestic and export automotive sales along with increased demand on supporting industries, demand from El Bajío for busheling is expected to remain strong. Prices for finished steel goods follow the US market, with recent announced increases on flats and longs, scrap sellers began to push for gradual increases at weekly negotiations with mills.
Domestic scrap prices in Mexico are presently HMS I at MXN 4,200-4,600/mt ($204-224/mt), shredded at MXN 4,500-4,700 ($219-229/mt), and P&S and busheling at MXN 4,500-5,000 ($219-243/mt), all prices delivered to mill. Lower range for Monterrey and higher level of range in El Bajío. Prices lagged the upward global movement that began in late October, but gained 300-400 pesos in the first week of December and an additional 100-200 pesos within the last week.
According to market sources close to SteelOrbis, the market is expected to retain these price levels through the remainder of December as inventories at mills are sufficient and no surges are expected given upcoming holidays and planned mill outages. Additionally, a source noted, “Scrap may go up more in January, but lag the US prices, as we have a lot of uncertainty given potential NAFTA changes and the peso, while stable now, lost value.”
$1=MXN 20.56, 12/15/2016
$1=MXN 20.62, 11/29/2016