Producer prices from steel complexes in Mexico decreased 1.1 percent, year over year, in February. Compared to January, they decreased 0.4 percent, although accumulated inflation in the first two months of the year (compared to December) increased 1.0 percent, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
The annual drop in prices began in October 2022 and until February they have accumulated 17 months of decline.
In February, the Producer Price Index (PPI) without oil and with services increased 1.5 percent, year over year. Prices that include oil and services grew 1.4 percent. Annual general inflation (Consumer Price Index) was 4.4 percent in the same month.
The prices of the steel industry correspond to what Inegi calls "steel complexes." From October 2022 to September of last year (12 months), the price reduction was double digits. From October 2023 to last February (five months) the decrease is single digits.
In February, of the three products that make up the "steel complexes", the most pronounced reduction was in the price of rebar with a drop of 10.8 percent, the 17th consecutive annual drop. The price of steel slab decreased 1.9 percent, which is the eighth consecutive annual decline. In contrast, "steel sheet" (without sheet type breakdown) increased 2.2 percent. It was the second consecutive annual increase, after a streak of 16 consecutive months of decline.
The “iron and steel products manufacturing” industry recorded a marginal decline of 0.4 percent, year-over-year, in February. Thus, he accumulated 17 consecutive annual losses. Within this sector, prices for the production of steel tubes and poles increased 3.9 percent, thus breaking the downward trend of the last seven months.
Other annual price reductions: wire decreased 8.7 percent, production of metal structures 5.5 percent, cutting and bending of steel sheets 4.1 percent, production of heavy gauge metal tanks 3.9 percent, packaging manufacturing light gauge metal products 2.6 percent, wire products 2.0 percent, air freight rates 1.9 percent, ocean freight rates 1.4 percent and hand tools (non-powered) 0.6 percent.
In contrast, galvanized sheet increased 0.8 percent, the second consecutive annual increase, after a 15-month downward streak. Prices of enameled metal parts grew 0.9 percent. In this last product, in the last 86 months (7 years and two months), prices have only decreased four times.
Prices in the manufacture of blacksmith products increased 6.1 percent and in the manufacture of industrial boilers increased 6.7 percent.
Other increases recorded by industrialists were customs agency services and other intermediation services for freight transportation 1.7 percent, non-residential building 1.9 percent, residential building 2.6 percent, and road and bridge construction 3.8 percent, parcel and courier services 4.0 percent, medium voltage industrial electricity 4.7 percent, general warehouse services without specialized facilities 5.3 percent, general cargo motor transportation rates 5.5 percent and industrial electricity in high voltage 6.0 percent.
The largest increase was recorded in rail freight transportation rates with 7.3 percent, compared to February of last year.