Mexico remains a net importer of aluminium scrap while its exports surge 27.3% YoY in 2016

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Mexican aluminium industry is characterised by the presence of a large number of secondary aluminium smelters and die-casters which cater to the domestic automotive industry- globally the seventh-largest in production volume. Most of these smelters are fed by aluminium scrap imports from the U.S. Mexican scavengers, popularly known as buscabotes (literally: can seekers) recover aluminium cans in the U.S. and sell them across the border where they are used by the automotive OEMs.

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Aluminium scrap comprises one of the key imports of the country which shares a common border with the U.S. The market for recycled aluminium in Mexico shows a strong demand for scrap due to significant differences in prices for the virgin and secondary metal. However, the country also exports a substantial volume of aluminium scrap to the rest of South America and to the world to drive revenues back into the economy.

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Aluminium scrap exports by Mexico have been fluctuating over the last three years. In 2014, the country shipped 140,993.02 tonnes of aluminium scrap to the international markets which dropped 6.56 per cent to reach 131,740.33 tonnes in 2015. In 2016, the export volume spiked again to total at 167,769.15 tonnes. In 2017, till October, Mexico is estimated to ship around 155,347.29 tonnes of aluminium scrap, up 12.29 per cent from the same period of previous year.

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The value of exports has also followed a similar trend as the export volume since 2014 till 2016. In 2014, Mexico’s total aluminium scarp export was valued at US$227.5 million, which declined 9.6 per cent to total at US$205.5 million in 2015. In 2016, the value increased again by 2.7 per cent year-over-year to reach US$211.2 million. In 2017, till October, Mexico’s total aluminium scrap export is estimated to be valued at US$200.03 million, up 16 per cent from the corresponding period previous year.

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Mexico exported maximum volume of aluminium scrap to USA, Columbia, Dominican Republic, Guatemala, Ecuador, and Peru in 2016. The USA remained its top aluminium scrap supplying country last year.

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