Ferrous scrap prices in the Mexican domestic market continued to drop this week by an average of MXN 200-300/mt ($11.56-17.33/mt), depending on grade and market. Further price drops have been announced by some buyers, at the -MXN 200/mt ($11.56/mt) level, for this weekend. During this latest downward cycle, some buyers have accumulated MXN 1,000/mt ($57.6/mt) in price decreases, while others have followed closely behind. The most cautious buyers have waited to implement the aforementioned MXN 200/mt ($11.56/mt) decrease this week after seeing drops from everybody else.
In Bajío, sellers report that mills are insisting on prime grades. The word “desperation” has been mentioned in regard to the difficulty of mills in the region in securing material. Some buyers were seen lowering the price of secondary grades by MXN 400/mt ($23.11/mt) yet leaving prices for prime grades unchanged from last week. Given the situation, some sellers are hopeful that an upward correction for at least #1 busheling in the Bajio region could be in order. Yet sellers have been adamant in the past few weeks that there will not be any upward corrections in April and that they will offset the volume shortage with imports.
The price of #1 busheling in Bajio stands at MXN 7,700/mt ($450.4/mt) delivered consumer, down by MXN 200/mt ($11.56/mt) from last week. The price of HMS I in Bajio decreased by MXN 300/mt ($17.33/mt) to MXN7,100/mt ($410/mt) delivered..
Additionally, Mexican mills noted that higher prices will not necessarily lead to increased scrap generation, as industrial accounts such as automakers have their own production objectives. Interestingly, Canadian mills made price announcements for the domestic market on Friday as well, and they increased the prices of their prime grades by C$5/nt ($3.9/mt), yet contacts in Canada were quick to point out that this is not a prime increase per se, it is mostly to compensate variations in the exchange rate between the Canadian and US dollars over the couse of the past month. Secondary grades in Canada fell by C$20/nt ($15.9/mt).
In Central Mexico, the price of #1 busheling sits MXN 200/mt ($11.56/mt) lower than Bajio and Norte at MXN 7,500/mt ($433.2/mt) delivered consumer, while HMS I fell MXN300 ($17.33/mt) this week to MXN 6,600 ($381.3/mt) delivered.
$1 = C$1.38
$1 = MXN 17.87 (Apr 3)
$1 = MXN 17.3 (Apr 10)
