Ferrous scrap prices for the Mexican domestic market remained largely unchanged this week once again, as scrap demand in Mexico continues to be strong. Mills also await the outcome of the US ferrous domestic trading cycle, which began this week.
Scrap prices in Northern Mexico remained unchanged for HMS I at MXN6,300/mt ($365/mt) delivered consumer, P&S 5ft at MXN7,000/mt ($407/mt) delivered, machine shop turnings (MST) at MXN5,100/mt ($296/mt) delivered, shredded and #1 busheling at MXN7,900/mt ($456/mt) delivered. The dollar depreciated to MXN17.21 from MXN17.44 last week, meaning Mexican scrap sellers can now earn more if they get dollars for their grades. For example, the price of HMS I from Northern Mexico last week earned $361/mt.
This could spur Mexican ferrous scrap exports to the US a little. This year, Mexico has been holding on to its scrap, at least compared to previous years. According to US census data, in February, Mexico exported 48,000mt of scrap to the US, down 19pc from 59,000mt in February 2025; the trend is even more pronounced for the first two months of 2026, as Mexico exported 95,250mt in January-February, down 24pc from 125,200mt in the same period of 2025.
Participants mention that mills are comfortable with these price levels but are wary of their tendency to make sudden adjustments. A very limited number of buyers were seen issuing slight upwards corrections in the MXN100/mt ($5.8/mt) range, which did not influence indexes. In light of the falling dollar, Mexican mills may have to compete more closely with the export market, as the latter becomes more attractive for sellers. Other rumors include some mills lowering #1 busheling in Bajio by MXN200/mt in the coming days as part of the adjustments. Some sources mentioned mills in Veracruz could look to decrease their prices by MXN200/mt across the board this weekend. Yet sellers believe mills' scrap inventories are low and cannot afford to implement a solid downward turn.
In Central Mexico, prices for HMS I were unchanged at MXN6,600/mt ($383/mt) delivered consumer, P&S 5ft stayed at MXN7,200/mt ($418/mt) delivered, MST at MXN5,500/mt ($319/mt) delivered, shredded at MXN7,800/mt ($453/mt) delivered, and #1 busheling at MXN7,300/mt ($424/mt) delivered.
Bajio prices trended sideways at MXN7,100/mt ($413/mt) delivered, P&S 5ft at MXN7,400/mt ($430/mt) delivered, MST at MXN6,100 ($354/mt) delivered, shredded, and #1 busheling both remained at MXN8,100/mt ($471/mt) delivered.
It has been reported that the latest freight costs from Central Mexico to Veracruz consumers are MXN550/mt, while from Celaya in Baijo to Veracruz, they are almost double, at over MXN1,000/mt.
$1 = MXN17.21
