In late December, SteelOrbis reported Mexican scrap prices for HMS I at MXN 4,400-4,800/mt ($212-231/mt), shredded at MXN 4,750-4,950/mt ($229-238/mt), and P&S and busheling at MXN 4,800-5,200/mt ($231-250/mt), all prices delivered to mill.
Mexican scrap prices have increased continuously over the last month, as dealers have increased bidding in an effort to assure adequate inventory levels. Monterrey mills increased prices to retain scrap regionally and avoid losing it to El Bajio. The January increase in US scrap and finished goods prices also helped drive Mexican prices higher. Additionally, the additional depreciation of the peso in early January further contributed to an inflationary environment, as many scrap and finished goods transactions are tagged to US-based levels.
Current prices have been reported as follows: HMS I at MXN 5,000-5,300/mt ($228-242/mt), shredded at MXN 5,300-5,500/mt ($242-251/mt), and P&S and busheling at MXN 5,400-5,800/mt ($246-265/mt), all prices delivered to mill. HMS I increased MXN 600/mt ($16/mt) on the bottom of the range and MXN 500/mt ($11/mt) on the top, shredded increased MXN 550/mt ($13/mt) and P&S and busheling, which continue trending in tandem, increased MXN 600/mt ($14.5/mt).
Given the upward scrap price movement and solid demand, a source in the Northern region of Mexico reports having increased prices paid to collectors by over 30 percent relative to early December, to ensure the flow of adequate supply of feedstock.
$1 = MXN 20.74 12/22/2017
$1 = MXN 21.91 01/19/2017