As previously reported, the Mexican domestic ferrous scrap market remained stable this week, with the exception of a few grades that received minor price adjustments. After some upward corrections across the board issued last week by a minority of mills, buyers in Mexico were expected to wait for the US market to settle in May before issuing any further movements.
Scrap consumption is still reported as healthy in Mexico, and despite mills refraining from issuing upward corrections in the previous week, some had to resort to them while supplementing their tonnages with imports.
Northern Mexico’s HMS I remained unchanged at $6,300/mt ($361/mt) delivered consumer while P&S 5ft did the same at $7,000/mt ($401/mt) delivered. #1 busheling and shredded both remained unchanged and at the same level of MXN7,900/mt ($452/mt) delivered. Machine shop turnings (MST) did not move at MXN5,100/mt ($292/mt) delivered.
The outlook in the US became less clear on Thursday as several US mills were reported to issue cancellations of orders for secondary grades, indicating they could expect lower pricing for those grades in May. Some buyers reported that, due to healthy scrap flows, they would try to instill a $20/gt price contraction for those grades while leaving prices for prime grades alone. Contacts in the US are undecided if the market could accept that, and if all buyers will try to push the market down. In the meantime, some buyers in Mexico expressed a desire to wait for the US market to settle before making any more moves.
In Central Mexico, prices for HMS I trended sideways at MXN6,600/mt ($378/mt) delivered consumer while P&S 5ft increased by MXN500/mt ($29/mt) to MXN7,200/mt ($412/mt) delivered due to a recent surge in demand for the grade and its close parity with HMS I last week of only MXN100/mt ($6/mt). #1 busheling rose by MXN200/mt ($11/mt) to MXN7,300/mt ($418/mt) delivered as some buyers issued a small upward correction. MST was unchanged at MXN5,500/mt ($315/mt) delivered Mexican mill.
In the Bajio region, the price of HMS I was flat at MXN7,100/mt ($407/mt) delivered consumer. On the other hand, the price of P&S 5ft received a MXN300/mt ($17/mt) upward correction to MXN7,400/mt ($424/mt) delivered. Both #1 busheling and shredded trended sideways and at the same level of MXN8,100/mt ($464/mt) delivered Bajio consumer.
$1 = MXN17.47
