Ferrous scrap prices in the Mexican domestic market remained unchanged on Friday, as most mills relented from the decreases that had occurred since Jun 12. Nevertheless, some mills in the Bajio region have announced they will lower their prices by MXN200/mt starting this weekend. It appears that the market has not reached bottom. Lower prices in some grades in the US for August are expected to allow Mexican mills to continue pursuing lower domestic scrap prices.
Mills across all of Mexico continue to report healthy scrap inventories. Some steelmakers with a national presence that stopped receiving material for several weeks are expected to resume receiving scrap this coming Monday, at unchanged prices. The Mexican domestic rebar market remains sluggish as the rainy season continues in the country's Central region, suppressing construction activity.
In Northern Mexico, the price of #1 busheling remained at MXN6,900/mt ($403/mt) delivered consumer, HMS I was unchanged at MXN5,600/mt ($323/mt) delivered, while P&S 5ft stayed at MXN6,200/mt ($362/mt) delivered; shredded was unchanged at MXN6,900/mt (403/mt) delivered. Machine shop turnings (MST) remained flat at MXN4,600/mt ($268/mt) delivered.
US prices are expected to settle very soon. Mills issued price announcements starting on Wednesday with prime grades and P&S 5ft sideways and shredded and MST down $10/gt from July settled prices. Mills were trying to suppress HMS I prices by $20/gt and, for example, in Detroit, a limited number of buyers were able to purchase the grade with that discount, yet only the ones that bought the grade at unchanged prices last month; all other buyers bought it at a minus $10/gt from July prices. In the Southeast, the trend was similar: a sideways trend on prime grades, and a $10/gt decrease for all other grades. P&S 5ft was sold in the Southeast at $10/gt below July settled prices in some instances, and unchanged in others. In Texas, some buyers tried purchasing obsolete grades at $20/gt below July prices but had to settle at $10/gt below.
Prices in Central Mexico were sideways across the board. #1 busheling prices in Central Mexico remained at MXN6,500/mt ($379/mt) delivered consumer, while HMS I was unchanged at MXN5,700/mt ($333/mt) delivered. Prices for P&S 5ft were flat at MXN6,100/mt ($356/mt) delivered, shredded prices were unchanged at MXN7,100/mt ($414/mt) delivered, and MST prices remained at MXN4,500/mt ($264/mt) delivered.
In Bajio, scrap prices were also unchanged on all grades. The price of #1 busheling was flat at MXN6,700/mt ($391/mt) delivered consumer, while HMS I prices remained at MXN6,000/mt ($350/mt) delivered, and P&S 5ft stayed at MXN6,200/mt ($362/mt). Shredded prices sit at MXN7,300/mt ($425/mt) delivered, and MST at MXN5,200/mt ($305/mt) delivered.
$1 = MXN17.13
