The Mexican government announced today the minimum sales prices for the metal scrap generated by all dependencies. Starting tomorrow, the average price increase of 20 metal products represents an increase of 2.3 percent compared to April prices, this increase is 10 times more than the 0.21 percent inflation expected for the same period, according to a SteelOrbis analysis of official data.
The Mexican government's scrap list is 180 products and comparable scrap metal is 20 products with a nominal average price (not adjusted for inflation) equivalent to $542/mt in April and $554/mt in June. Although the maximum price is $1,468/mt (carbon steel tubes of more than 3 meters in length and an external diameter of up to 33.40 mm or 1 5/16 inches) and a minimum of $64/mt (iron slag).
The Ministry of Finance (SHCP) published today in the official gazette (DOF) the list of waste. For example, what it calls "first special" ferrous scrap because it does not require cutting for its smelting at $323/mt.
Premium ferrous scrap, which requires preparation or cutting for smelting at $288/mt. Second grade ferrous scrap at $273/mt and third grade at $226/mt.
Vehicle scrap at $379/mt. The scrap generated in motor graders, pavers, agricultural tractors averages $329/mt, among others.
The conversion to dollars was made with an exchange rate of MXN of 17.62 per dollar.