Ferrous scrap markets strengthen in US and Mexico, Brazilian prices remain stable

Global ferrous scrap markets showed mixed trends in the week ended. US prices consolidated after October gains, supported by strong steel production and tightening supply. Mexican prices strengthened on peso depreciation and rising US scrap values, while Brazil remained stable amid subdued trading, high inventories and uncertainty ahead of the presidential election.

US

Mexico

Mexican ferrous scrap prices strengthened in the week ended, supported by peso depreciation and rising US scrap prices. Producers increased bids to secure material, with market participants expecting further price increases through December.

Busheling rose MXN 100/t w-o-w to MXN 7,300/t ($396/t), while HMS 1 remained stable at MXN 6,400/t ($348/t), both FOB Northeast Mexico. Busheling prices ranged from MXN 7,200-7,400/t across the Bajío and Northeast regions.

A major steel producer raised scrap bids across several regions to secure additional volumes. Stronger domestic demand, higher steel prices and expectations of reduced US winter scrap collection further supported the bullish market sentiment.

Brazil

Brazilian ferrous scrap prices remained broadly stable during the week ended, with subdued trading ahead of the presidential election on 25 Oct. Market participants reported largely unchanged conditions.

Platts assessed HMS 80:20 at BRL 800/t, clean steel scrap at BRL 900/t and turnings scrap at BRL 700/t FOT. High inventories and approaching year-end raised concerns over potential price reductions.

Weakening export prices, rising operating costs and uneven regional demand continued to constrain market momentum. Large recyclers faced greater pressure, while smaller dealers reported relatively stable business.