Mexican domestic hot rolled coil (HRC) prices fell US$12/mt in the last two weeks to settle at US$730/mt ex-mill.
While there have been large investments announced recently by Mexican flat steel mills, increased competition among service centers that are being installed in industrial corridors is not allowing mills’ attempts to increase of prices to spread into the local market.
"Domestic steel companies are not able to supply special steels required for the automotive or appliance sectors, nor technology, nor cost, nor capacity," said one automotive industry source, adding that the arrival of new auto companies and the promise of new energy projects will trigger growth of up to 10 percent for some service centers and steel distributors that have a greater presence in the country.