Published by:Evan Pfab<>
24 Jun 2025 @ 18:07 UTC

Movements in the Mexican ferrous scrap market remained stable in the week ended Friday, June 20, with prices for all major grades holding firm across both the Bajio and Monterrey regions. Sources said the steady pricing environment may signal short-term stabilization, even as broader global dynamics — such as shifts in US trade policy — unfold.
Fastmarkets’ weekly assessment of the steel scrap No1 heavy melt, consumer buying price, delivered mill Monterrey was 4,400 pesos ($231) per tonne on Tuesday, June 24, unchanged from June 17.
The corresponding assessment of the steel scrap No1 heavy melt, consumer buying price, delivered mill Bajio was 4,500 pesos per tonne on Tuesday, also unchanged week on week.
Price parity continued between Fastmarkets’ assessments for the steel scrap No1 busheling, consumer buying price, delivered mill Bajio and delivered mill Monterrey at 6,500 pesos per tonne on Tuesday, both unchanged since June 10.
While domestic pricing has shown resilience, the global backdrop remains uncertain. A recent report from credit insurer Coface noted that newly increased Section 232 tariffs in the US are likely to impact key exporters such as Canada, China, Mexico and members of the EU. But, in the long run, Mexico may have some competitive advantage emerge from the situation.
In the long term, rising US tariffs on steel and aluminium could wryly benefit Mexico. As most of its automotive exports to the US meet USMCA [United States-Mexico-Canada Agreement] requirements, they are exempt from tariffs. Meanwhile, its production should become even more competitive due to the distortion of production costs compared to the US, further exacerbated by these additional tariffs, Coface said in its June report.
Still, uncertainty remains within the industry. One market participant noted that many manufacturers are waiting for more clarity around how auto parts will qualify for tariff exemptions under USMCA, which is creating hesitation in production planning.
We’re seeing less scrap production, and it’s also related to the tariffs, they said, adding that the market is still trying to interpret the implications of US trade policy changes.