BH: Hello and welcome to this episode of the “Metal Movers” podcast, where we talk about the most relevant global topics of the metals industry. This podcast is brought to you by Argus Media, a leading independent provider of commodity and pricing information. My name is Blake Hurtik, I’m the Editorial Manager of Metals, Fertilizers and Chemicals here at Argus.
In today's episode, we’re talking with Marialuisa Rincon, the Deputy Editor of Argus Scrap Markets, about the launch of our Mexican finished steel assessments. You can read more about the market in the Argus Global Steel publication.
Welcome, Maria.
MR: Hey Blake, thanks. Happy to be here.
BH: So tell us a little bit about the Mexican steel market and why we’re launching a price there.
MR: Yeah so…
- Mexican steel market in flux because of the tariffs — was a major outlet for US steel
- US TARIFFS — 12 March 25%, 30 May 50%
- Tariffs and demand are weighing on prices
- Diverging from the US market, to which it was closely tied, which is where we come in to offer clarity
- Buyers are looking to source more domestically because of Mexico’s own protectionist policies
BH: Great! What do the prices look like?
MR: We’re starting our finished steel assessments in the center of it all: the northeast
- Main flat steel supplier based in the region
- Pricing hot rolled coil in pesos and dollars to represent how business is done in both currencies
- Talking on a weekly basis to some of the biggest buyers of HRC in the country
BH: What sets us apart in that space?
MR:
- Local support — team in Mexico
- Transparency and independent view of the market
BH: Does Argus have metals coverage in Mexico?
MR: We’ve already made our entry into Mexico
- We price four ferrous scrap grades in the region
- Closely tied to steel market
- On those — talk to both mills and recyclers to determine their prices for the steel mill feedstocks
BH: How big of a steel market is Mexico?
MR:
- Second-largest steel market in Latin America after Brazil.
- In 2024 ranked as the 15th-largest steel producer in the world and as the 8th-largest steel consumer, according to WorldSteel
BH: That’s pretty big
- Wanted to go back to something you said earlier
- You mentioned demand was pressuring prices, what’s going on there?
MR: Yeah, like I mentioned
- Tariffs are pressuring Mexican demand
- When demand would get low in Mexico, mills would export to the US tariff-free under the US Mexico Canada Agreement or the USMCA
- Now that tariffs put HRC prices more than $200 above the US, it’s not viable to sell northward
- Mills are turning inward to fulfill shipments
- Tariffs situation not expected to change until mid-2026 at the earliest when the USMCA is re-negotiated.
BH: And they’ll need a reliable, independent price to do it with!
MR: Exactly!
BH: (Close out) Thank you very much for joining me today Marialuisa.
MR: Thank you for having me, Blake.
BH: For more episodes of the Metals Movers podcast and more information of our metals coverage please visit argusmedia.com
