16 Jul 2024 | 21:47 UTC

Platts proposes launch of first daily Mexican ferrous scrap assessments

Platts, part of S&P Global Commodity Insights, proposes to launch new daily ferrous scrap price assessments in Mexico, effective Sept. 2, 2024.

The new assessments would complement Platts established suite of domestic steel assessments, including Mexican delivered hot-rolled and cold-rolled coils and rebar, and build on its comprehensive US ferrous scrap assessment offerings.

The latest proposed launch responds to growing interest from market participants in additional spot pricing information for ferrous scrap. Scrap demand in North America is set to increase, with Mexican and US steelmakers increasing electric-arc-furnace capacity as they focus on decarbonization and nearshoring opportunities.

The new assessments would reflect domestic #1 Busheling and Heavy Melting Scrap (HMS) 1 scrap in Mexico, Free on Truck (FOT) Northeast, a minimum of 500 mt.

The new assessments and their specifications would be as follows:

Description Quality/Dimensions Volume Payment Terms Timing Location UOM
#1 Busheling Scrap Mexico ReMA (ISRI) 207 Min 500 mt Net 15 days Delivery 15-30 days FOT Northeast Pesos/mt, also converted to $/mt
HMS 1 Scrap Mexico ReMA (ISRI) 200-202 Min 500 mt Net 15 days Delivery 15-30 days FOT Northeast Pesos/mt, also converted to $/mt

All market information reported to Platts may be considered for publication, including firm bids, offers, transactions, indications of value, as well as any other data deemed relevant to the assessment process.

Platts may normalize information heard in the market with differing specifications to meet the assessment specifications. Normalization brings market information in line with Platts-assessed specifications.

The assessments, which would follow Platts Mexico publishing schedule, would be published on a daily basis and reflect a 4:30 pm São Paulo time market close.

The daily assessments and associated monthly averages would be published in Steel Markets Daily and World Steel Review, as well as in the Platts price point database.

Platts invites feedback on this proposal to LatAmMetalsteam@spglobal.com and pricegroup@spglobal.com by July 31, 2024.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.