Ferrous scrap prices for the Mexican domestic market diverged this week in trend, as some mills caught up by lowering their prices while a very limited number of steelmakers began increasing their prices by MXN100/mt across the board. Participants attribute this divergence to price corrections needed to stabilize scrap demand. Mills tried to instill a sustainable downward trend, but the market did not allow it. In general, the slight upticks offset the last price contractions.
By Friday afternoon, there were further reports that some mills in the Bajio region were increasing their prices by MXN200-300/mt.
In Northern Mexico, all prices remained the same this week, with the exception of HMS I, which fell by MXN300/mt to MXN6,000/mt delivered to the consumer. P&S 5ft remained at MXN7,000/mt delivered, shredded remained at MXN7,900/mt delivered, while busheling I was flat at MXN7,900/mt delivered.
Participants noted that the decreases observed last week, particularly in Veracruz, were due to lower finished-steel volumes. The Mexican steel sector has been resilient, yet not completely immune to the US import tariffs imposed on Mexican steel. Grupo SIMEC’s net profit in 2025 decreased by 51pc annually, according to its latest report. The company’s shipments declined by 6pc during the same period.
It remains to be seen what kind of reprieve the Mexican steel sector can obtain in this summer’s USMCA free trade agreement negotiations. A couple of weeks ago, the US offered an opportunity to reduce import tariffs from 50pc to 25pc, but only on Mexican and Canadian steel used in the US heavy vehicle sector, and only if the steelmaker provided assurances that it would expand some of its production into the US.
Scrap prices in Central Mexico trended sideways with HMS I at MXN6,600/mt delivered, P&S 5ft at MXN7,200/mt delivered, shredded at MXN7,800/mt delivered, machine shop turnings (MST) at MXN5,500/mt delivered, and #1 busheling at MXN7,300/mt delivered.
In the Bajio region, HMS I fell by MXN100 to MXN7,000 delivered, P&S 5ft were flat at MXN7,400/mt delivered, shredded fell by MXN100 to MXN8,000/mt delivered, MST was flat at MXN6,100/mt delivered, and busheling #1 decreased by MXN100 to MXN8,000/mt delivered.
$1 = MXN17.34
