Mexican steelmakers' producer prices decreased 2.3 percent, year-over-year, in December. In addition to registering a clear slowdown since last July when it registered an annual decrease of 17.1 percent, it is the fifteenth consecutive annual decrease, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
In December, the Producer Price Index (PPI) without oil and with services increased 1.4 percent, year-over-year. Prices with oil and services grew 1.0 percent. Annual general inflation (Consumer Price Index) was 4.7 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 and remained at double digits until September of last year. As of October, the reduction is in single digits.
Of the three products that make up the "steel complexes," the most pronounced reduction was in the price of rebar with 7.3 percent, it is the fifteenth consecutive annual decrease. The price of steel slab decreased 3.8 percent and the price of "steel sheet" (without sheet type breakdown) decreased 0.3 percent. These declines are the sixth and sixteenth consecutive annual declines, respectively.
Beyond the concept of steel complexes, other annual price reductions were wire rod with 9.8 percent, steel bars with 8.6 percent, iron and steel profiles with 4.9 percent, iron and steel tubes and posts with 4.3 percent, galvanized sheet with 3.5, metal structures 2.6 percent and painted sheet 0.2 percent.
Other declines were in the price of iron ore at 5.2 percent. The cutting and folding of sheets with 5.5 percent, the air cargo transportation rate 4.5 percent and maritime cargo transportation 3.0 percent.
The price of high voltage electricity increased 6.2 percent, medium voltage electricity increased 3.4 percent.
Other prices that also increased were in cargo storage 4.3 percent, freight motor transportation rates 5.4 percent, rail freight transportation 7.0 percent and toll rates for freight trucks 9.9 percent.