Distributors and steel service centers in Mexico will invest around US$1.5 billion over the next three years, said Raymundo Díaz Oñate of the National Confederation of Steel Distributors (CONADIAC).
Industry profitability has shown a downward trend from general industrial to service centers and steel distributors. "Seel distributors today recorded a negative return as CONADIAC polls, while service centers still maintain a very low yield of 2.5 percent of sales," Díaz Oñate said during an interview with Reportacero.
Gross profit as a percentage of total sales in the period January-July 2013 at the industry level was 4.1 percent, service centers handled 5 percent and distributors handled 3.8 percent. Díaz Oñate said that the decrease of 1.5 percent in the construction industry for the first half of the year compared to the same period last year is worrisome.
"This has caused industry distributors and service centers to report a decline of 8.3 percent in sales of Wire rod in the January-August period of 2013, compared to the same period last year," he said.
Representatives of steel processors and dealers said: "It is essential to exercise the budget for the 2013-2018 national infrastructure plan."