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Several steelmakers announced scrap price cuts of 500 pesos ($29) this week, with at least one steel producer reducing its buying price by 1,000 pesos.
Price reductions were widespread in the market, leaving sellers with few options to negotiate, Fastmarkets heard.
Fastmarkets’ price assessment for steel scrap No1 busheling, consumer buying price, delivered mill Bajio was 7,200 pesos ($419) per tonne on Tuesday, down by 700 pesos week on week from 7,900 pesos per tonne.
The corresponding assessment for steel scrap cut structural/plate 3ft max, consumer buying price, delivered mill Bajio was 7,000 pesos per tonne on Tuesday, also down by 700 pesos week on week from 7,700 pesos per tonne.
Similarly, Fastmarkets’ price assessment for steel scrap No1 busheling, consumer buying price, delivered mill Monterrey was 7,150 pesos per tonne on Tuesday, down by 750 pesos week on week from 7,900 pesos per tonne.
And Fastmarkets assessed steel scrap No1 heavy melt, consumer buying price, delivered mill Monterrey at 6,300 pesos per tonne on Tuesday, down by 750 pesos week on week from 7,050 pesos per tonne.
Some market participants believed that scrap price cuts are close to an end, with some signs of buyers stabilizing their bids.
Meanwhile, all eyes are on the February scrap settlement in the United States, which is likely to influence the Mexican scrap market in the next few weeks, Fastmarkets heard.
“We question whether mills have gone too far and if we’ll see the market bounce back a bit, depending on how the US market settles over the next couple of days,” a source told Fastmarkets.
Fastmarkets’ price assessments for scrap No1 busheling in Mexico fell by 1,550-1,600 pesos since January 16, when price cuts began.
There were signs that US steelmakers plan to reduce scrap prices in the upcoming February scrap settlement, and the market is paying close attention to Turkish importers for cues on the direction of prices, Fastmarkets understands.
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