Producer prices of steel complexes in Mexico decreased 4.4 percent, year-over-year, in May, thus accumulating 20 consecutive months of price declines. In a monthly comparison, compared to last May, an increase of 0.2 percent was recorded, according to an analysis by SteelOrbis of data from the national statistics agency Inegi.
The 20 annual price drops in the steel complexes is the worst recession in the last 31 years. In those three decades there were three other recessions, one of 17 months that ended in January 2014. Another of 15 consecutive months that ended in August 2020 and another of 13 months that ended in April 2016.
The behavior of the Producer Price Index (PPI) in the steel complexes contrasts with the general inflation (Consumer Price Index) in May, which in monthly comparison increased 0.19 percent and in annual comparison increased 4.7 percent.
The May PPI without oil and with services increased 3.2 percent, year-over-year. The PPI that includes oil and services grew 3.3 percent.
Steel industry prices, corresponding to what Inegi calls "steel complexes," decreased 4.4 percent in May, year-over-year.
Of the three products that make up the "steel complexes", the most pronounced reduction was in the price of rebar with an annual drop of 15.8 percent, the twentieth consecutive annual drop. The price of steel ingot and slab decreased 2.4 percent, it is the eleventh consecutive annual decrease and "sheet steel" (without breakdown of the type of sheet) decreased 1.5 percent, it is the second annual decrease after three consecutive increases.
Also falling in price, in annual comparison, were iron and steel profiles with 16.8 percent, wire rod with 15.6 percent, iron and steel wires 11.5 percent, automobile corks and license plates 9.7 percent, galvanized steel 8.9 percent and the manufacture of metal structures 8.5 percent.
In contrast, increases were recorded in the manufacture of ladders and other blacksmith products with 4.7 percent, in iron and steel tubes and posts with 4.7 percent, and in the manufacture of industrial boilers with 8.3 percent.