Scrap prices in Mexico were left unchanged for another week, as participants noted current stability between supply and demand. Some sellers did seek increases from mills in the Bajio region, yet the buyers were unwilling to acquiesce. Initial reports of an absolute sideways market across the board in the US contributed to the stability in the Mexican scrap market this week.
Only a very limited number of buyers were seen raising their prices by MXN100/mt in the Central region, yet other participants noted minor adjustments in light of the generalized increases implemented by other mills in recent weeks.
In the Northern region of Mexico, prices remained unchanged at MXN7,900/mt ($455/mt) delivered consumer for #1 busheling, MXN6,000/mt ($346/mt) delivered for HMS I, MXN7,000/mt ($403/mt) delivered for P&S 5ft, MXN7,900/mt ($455/mt) delivered for shredded, and MXN5,100/mt ($294/mt) delivered for machine shop turnings (MST).
Mexican contacts also pondered the repercussions of a possible 25 percent US import tariff on Brazilian pig iron, as this week, it was excluded from the US Trade Representative’s list of tariff exemptions. They believe that in the short run, it could lift Mexican and US #1 busheling prices; as soon as in July. Mexican stakeholders said that pig iron is an important part of the steelmaking mix and that the US could be looking to be independent from foreign pig iron, especially after there was the announcement of a new direct reduced iron (DRI) plant being built for $1.9 billion by Big River Steel in Arkansas. The plant is part of a series of investments announced by Nippon Steel as part of the US Steel acquisition. Mexican contacts believe the US could become a significant producer of metallics used in steelmaking, and there could be a decrease of pig iron shipments coming in from Brazil.
Prices were also stable in the Central region, with MXN7,300/mt ($421/mt) delivered consumer for #1 busheling, MXN6,600/mt ($380/mt) delivered for HMS I, MXN7,200/mt ($415/mt) delivered for P&S 5ft, MXN7,800/mt ($450/mt) delivered for shredded, and MXN5,500/mt ($317/mt) delivered for machine shop turnings (MST).
In Bajio, the hub of the automotive sector in Mexico, prices remained unchanged at MXN8,000/mt ($461/mt) delivered consumer for #1 busheling, MXN7,000/mt ($403/mt) delivered for HMS I, MXN7,400/mt ($426/mt) delivered for P&S 5ft, MXN8,000/mt ($461/mt) delivered for shredded, and MXN6,100/mt ($352/mt) delivered for machine shop turnings (MST).
