Producer prices of steel complexes in Mexico decreased 3.8 percent, year-over-year, in April, thus accumulating 19 consecutive months of price declines. In a monthly comparison, a decrease of 1.7 percent was recorded, according to an analysis by SteelOrbis of data from the national statistics agency Inegi.
The behavior of the Producer Price Index (PPI) in the steel complexes contrasts with the general inflation (Consumer Price Index) in March, which in monthly comparison increased 0.20 percent and in annual comparison increased 4.7 percent.
The April PPI without oil and with services increased 2.4 percent, year-over-year. The PPI that includes oil and services grew 2.6 percent.
Steel industry prices, corresponding to what Inegi calls "steel complexes", decreased 3.8 percent in April, year-over-year.
Of the three products that make up the "steel complexes", the most pronounced reduction was in the price of rebar with a drop of 16.6 percent, the nineteenth consecutive annual drop. The price of steel slab decreased 2.3 percent, the tenth consecutive annual decline, and steel sheet (without breakdown of the type of sheet) decreased 0.2 percent.
The drop in the price of the sheet broke the annual upward trend that was recorded in the last three consecutive months (from January to March). Prior to these three increases, there was a streak of 16 consecutive months of decline (from September 2022 to December 2023).
Other price declines in the steel industry (outside the concept of steel complexes) were recorded in the price of wire rod with a decrease of 12.9 percent in April, year-over-year. This drop is the most pronounced in the last six months, and there have also been 19 consecutive months with annual drops in the price.
Wire prices decreased 10.3 percent, year-over-year, in April. Iron and steel profiles decreased 10.0 percent, galvanized sheet decreased 6.7 percent. In addition, heavy gauge metal tanks and steel bars also decreased in price by 5.3 percent, and cast and molded metal parts by 3.8 percent. Wire products at 2.9 percent, light gauge metal containers at 2.7 percent, and hand tools (non-powered) at 2.2 percent.