Producer prices from steel complexes in Mexico decreased 0.8 percent, year-over-year, in January, the 16th consecutive annual decline, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
In January, the Producer Price Index (PPI) without oil and with services increased 1.2 percent, year-over-year. Prices with oil and services grew 1.0 percent. In contrast, annual general inflation (Consumer Price Index) was 4.9 percent in the same month.
The prices of the steel industry correspond to what Inegi calls "steel complexes." The price reduction began in October 2022 at double digits, a variation that continued until September of last year. As of October, the reduction is single digit in a clear deceleration in the decline in prices.
In January, of the three products that make up the "steel complexes," the most pronounced reduction was in the price of rebar with 7.6 percent, it is the sixteenth consecutive annual decrease. The price of steel slab decreased 3.6 percent, which is the seventh consecutive annual decline. In contrast, "steel sheet" (without breakdown of the type of sheet) broke the downward trend of the last 16 months with an increase of 2.1 percent.
Beyond the concept of steel complexes, other annual price reductions were in the mining of metallic minerals with 14.4 percent, the price of wire decreased 8.7 percent, steel bars 8.0 percent, wire rod 6.0 percent, structures metallic 5.8 percent, iron ore 4.8 percent, sheet cutting and bending 4.3 percent. In general, in the basic metal industries, the general decrease in producer prices in the Mexican market was 5.9 percent.
Rates in air cargo transportation decreased 3.4 percent, in maritime cargo transportation it decreased 2.1 percent. In the production of heavy caliber metal tanks they decreased 1.7 percent, wire products 0.9 percent, iron and steel tubes and poles 0.3 percent, and producer prices of iron and steel profiles 0.3 percent.
In contrast, the Mexican steel market recorded price increases in enameled metal sheets with an annual increase of 0.4 percent in January, year-over-year. Hand tools (without motor) with 1.0 percent, non-residential building 1.2 percent, building of warehouses and industrial plants 1.2 percent, galvanized sheet 1.7 percent, residential building 2.9 percent, motor transportation rates general load 4.6 percent, medium voltage industrial electricity 5.0 percent and high voltage industrial electricity 6.4 percent.
Rail freight transportation rates increased 7.3 percent in January 2024, compared to the same month in 2023.