The slowdown in the drop in producer prices of Mexican steel companies has been reversed and is gaining strength again. In July prices decreased 17.1 percent, year-over-year, although it is the tenth consecutive annual drop, it is also the second drop to intensify, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
The Producer Price Index (PPI) shows that the fall in the prices of the products of the Mexican steel complexes began in October 2022, although in December with an annualized fall of 24.8 percent, it marked the beginning of a slowdown in the fall that it reached a drop of 13.6 percent in May of this year.
Starting in June, the drop regained strength with a drop of 15.4 percent and now the reduction of 17.1 percent in July shows that the trend of more pronounced drops has regained strength.
In the broader economy, producer prices excluding oil and services increased 0.7 percent, year-over-year, in July. Prices including oil and services decreased 0.8 percent. The PPI contrasted with the annual inflation (Consumer Price Index, CPI) for July, which increased 4.8 percent.
The prices of the steel industry correspond to what the Inegi calls "steel complexes." The most pronounced price contraction was in "steel sheet" (without breakdown of sheet type), with an annual decrease of 21.0 percent. It is the eleventh consecutive annual reduction.
The second most pronounced price reduction was in the rebar with a drop of 15.9 percent. Thus, he accumulated 10 consecutive annual casualties.
In contrast, after two months of annual price increases, steel slab returned to negative territory down 3.6 percent.
Beyond the concept of steel complexes, the most pronounced price declines were in wire rod with 17.2 percent, galvanized sheet decreased 16.7 percent, year-over-year, in July.
The price of wire decreased 12.2 percent, steel bars decreased 9.9 percent, and the price of metal structures decreased 4.2 percent.
The price of iron and steel profiles decreased 3.6 percent and the prices of sheet cuts and bends decreased 4.2 percent.
The price of high-voltage electricity increased 11.0 percent annually in July. Medium voltage electricity increased 7.4 percent. Steel tools (without motor) increased in price 11.0 percent annually in July.