MONTERREY, Mexico Mexico
will more than quadruple its ferrous scrap imports in the
coming years as domestic collections fail to keep pace with the
countrys rapid growth in steel production, according to
one scrap company.
Mexicos annual steel
production is expected to rise to more than 24 million tonnes
by 2016 from 18 million tonnes last year, Claudio Gonzalez
Carrillo, a mechanical engineer at Toluca, Mexico-based
recycling company Reciclacentro, told delegates at
AMMs 18th annual Mexican Steel Forum in
He said he expects the domestic
generation of obsolete and prime scrap to grow marginally over
the next four years, which would put more pressure on Mexican
steel producers to import scrap. "Raw steel production will
increase 30 percent in the next three to four years, but there
wont be that much of a percentage increase in scrap
generation," he said.
Carrillo speculated that the
domestic scrap flow would reach around 9 million tonnes
annually by 2016, up just over 1 million tonnes from the
However, the addition of 6
million tonnes of steel production will cause a "movement in
force towards scrap imports," Carrillo said. As a result,
Mexico will import around 4 million tonnes of scrap in 2016
vs. total 2012 scrap imports that Carrillo estimated
at 700,000 tonnes. About 90 percent of Mexicos scrap
imports come from the United States, he noted.
Imports will trend only
marginally higher in 2013 as the country waits for announced
projects to come online, but the spike will make itself felt in
2015 and 2016, Carrillo said.
Reciclacentro ships about 10,000
tonnes of ferrous scrap per month from three locations to
different consumers in Mexico, he said.
Prices for No. 1 busheling scrap
were within a $50 margin of its average price last year and No.
1 heavy melt prices were within a $40 range, and upward or
downward price trends were influenced mainly by the U.S. scrap
market, Carrillo said. Scrap prices in Mexico dropped
significantly in January despite prices moving sideways in the