Global forces put pressure on Mexican HRC prices

Thursday, 13 March 2014 22:27:30 (GMT+3)   |  
       

Mexican domestic hot rolled coil (HRC) prices fell US$32/mt in the last three weeks to settle at US$698/mt ex-mill.

China's economic slowdown is affecting the prices of some raw materials, which has caused a decline in industrial commodities ranging from copper to iron ore and coal. The overall situation is resulting in a panic, pushing prices for flat products down, according to industry sources.

However, the local automotive industry announced optimistically that the automotive trade balance reached a record in 2013, recording a surplus of US$38.77 billion, an increase of 20.2 percent over the balance of 2012.

Without the participation of the automotive sector in the trade balance, Mexico would have an excess of a US$39.0 billion deficit, rather than the $1.022 billion it reported in 2013.


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