Mexico’s ferrous scrap prices for the domestic market continued to decrease this week, with several mills declining in the MXN200-400/mt ($11.57-23.1/mt) range for cut grades and shredded, while #1 busheling has remained stable due to solid demand.
In the country’s automotive hub, the Bajio region, the price of #1 busheling remained sideways at MXN7,700/mt ($446/mt) delivered consumer. The price of HMS I in the region fell by MXN200/mt ($11.57/mt) to MXN6,900/mt ($399/mt) delivered during the same period. Shredded in Bajio decreased by MXN200/mt ($11.57/mt) this week and settled at MXN7,900/mt ($457/mt) delivered, currently sitting above #1 busheling, something not uncommon in Mexico.
Some positive sentiment is starting to surface, as contacts report that the scrap market could have reached its floor this week, with a possible period of stability for the rest of the month. Even so, rumors of a possible increase in MXN300/mt ($305/mt) for prime grades have surfaced, but no confirmation has been obtained. If this increase materializes, #1 busheling could catch up to shredded.
In Northern Mexico, the price of #1 busheling remains stable at MXN7,700/mt ($446/mt) delivered consumer, while HMS I decreased by MXN200/mt ($11.57/mt) to MXN6,300/mt ($365/mt) delivered. Shredded in that region remains on par with #1 busheling at MXn7,700 ($446/mt) delivered.
As summer approaches, some contacts have been discussing the broader industrial and economic landscape in Mexico. The USMCA free trade agreement renewal discussions will begin on Jul 1, and, as such, sentiment among Mexican participants remains positive that it will be renewed, albeit with some revisions or amendments. Contacts pointed out a recent Thursday release by the National Foreign Trade Council, asking Mexican authorities to review tax legislation that could affect US investments in Mexico. Recently, Mexico has sought to remove some of the benefits/tax breaks that foreign investment companies received. Still, 2025 was a record year for manufacturing-sector investments in Mexico, growing by 0.2 percent compared to the previous year. An improvement in the auto and auto parts sector in December was key, as investment growth in the manufacturing sector rose 4pc sequentially.
$1 = MXN17.28 (Apr 17)
