Ferrous scrap prices in Mexico for the domestic market continued to fall this week as mills continue to report healthy inventories and some are not receiving scrap for the time being. Some buyers report that they are out of the market altogether as they try to decrease their scrap inventories. Some of the mills' scrap yards are reported by sellers as “saturated” with scrap. A weak rebar market and softer rebar prices have caused scrap consumption to decline.
This week, some mills were seen implementing MXN200/mt ($11.45/mt) decreases across the country. Other mills only decreased MXN200-300/mt ($11.45-17.1/mt) in the Bajio region, while some in the state of Veracruz were seen lowering their prices by MXN150/mt ($8.6/mt). All in all, mills try to implement lower scrap buying prices to the extent that their scrap inventories allow them to.
Scrap prices in Northern Mexico dropped by MXN200/mt ($11.45/mt) across the board. The price of #1 busheling fell to MXN7,100/mt ($406/mt) delivered consumer, HMS I to MXN5,600/mt ($320/mt) delivered, P&S 5ft dropped to MXN6,700/mt ($383/mt) delivered, shredded decreased to MXN7,500/mt ($429/mt) delivered, and machine shop turnings (MST) was down to MXN4,800/mt ($275/mt) delivered.
The latest steel production and consumption data available in Mexico, provided by the National Chamber for the Iron and Steel Industry (CANACERO), is for May, yet even then, a monthly decrease in steel production and consumption can be appreciated, even if, in general, 2026 has been a better year than 2025 in those areas. In May, consumption of finished steel in Mexico contracted by 8.3 percent to 2.2 million mt from 2.5 million mt in April, yet was up by 11.3 percent from 1.9 million mt in May 2025. This latest data does not reflect consumption trends after the start of the rainy season in June; it would be expected that consumption and production data will show a decrease in those areas as newer steel reports are released.
Participants in the scrap market in Mexico believe any possible decrease in the US domestic market may allow the mills in Mexico to continue to try and lower prices. In the US, trading in the domestic market began this week, yet most grades are trending sideways in all regions, except for HMS I, which mills are trying to push down by $10/gt
Prices in Central Mexico also decreased by MXN200/mt ($11.45/mt) across the board. #1 busheling prices in Central Mexico fell to MXN6,500/mt ($372/mt) delivered consumer while HMS I to MXN5,700/mt ($326/mt) delivered. Prices for P&S 5ft decreased to MXN6,400/mt ($366/mt) delivered, shredded prices dropped MXN7,300/mt ($418/mt) delivered, and MST fell to MXN4,800/mt ($275/mt) delivered.
In Bajio, scrap prices also contracted by MXN200/mt ($11.45/mt) across all grades. The price of #1 busheling fell to MXN6,700/mt ($383/mt) delivered consumer, HMS I prices slipped to MXN6,100/mt ($349/mt) delivered, while P&S 5ft settled at MXN6,400/mt ($366/mt). Shredded prices dropped to MXN7,400/mt ($423/mt)delivered, and MST was down to MXN5,300/mt ($303/mt) delivered.
$1 = MXN17.49
