Producer prices of steel complexes in Mexico decreased 1.3 percent, year-over-year, in March, thus accumulating 18 consecutive months of price declines. In a monthly comparison, an increase of 0.3 percent was recorded compared to last February, according to a SteelOrbis analysis 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 0.29 percent and in annual comparison increased 4.4 percent.
The March PPI without oil and with services increased 1.9 percent, year-over-year. The PPI that includes oil and services grew 2.0 percent.
Steel industry prices, corresponding to what Inegi calls "steel complexes," decreased 1.3 percent in March, year-over-year. In the 18 months of consecutive price declines, the reduction was double digit on 12 occasions. From October 2023 to last March, the price drop was in the single digits.
Of the three products that make up the "steel complexes" the most pronounced reduction was in the price of rebar with a drop of 13.8 percent, the eighteenth consecutive annual drop. The price of steel slab decreased 2.1 percent, the ninth consecutive annual decline. In contrast, "steel sheet" (without sheet type breakdown) increased 2.9 percent. The increase in the price of sheet metal was the third consecutive annual increase, after a streak of 16 consecutive months of decline.
Other price declines in the steel industry (outside the concept of steel complexes) were recorded in the price of wire rod with a drop of 12.3 percent in March, year-over-year. Metal structures decreased 7.5 percent, the manufacture of heavy-caliber metal tanks decreased 6.7 percent.
Other decreases occurred in sheet cutting and bending with 4.5 percent, the price of cast and molded metal parts with 4.3 percent, the manufacture of light gauge metal containers with 2.9 percent, the price of iron profiles and steel 2.8 percent and enameled metal parts with 0.7 percent.
In contrast, the price of galvanized steel sheets increased 1.4 percent. It is the third consecutive annual increase after a period of 15 months with a downward trend in prices. The manufacture of metal kitchen furniture increased 2.0 percent.
Other increases were in the manufacture of ladders and other blacksmith products with 5.6 percent, iron and steel tubes and posts with 5.9 percent, industrial boilers and ovens with 6.3 percent and kitchen batteries with an increase of 20.1 percent. percent.
Other increases that all industrialists in Mexico paid are in customs agencies and other intermediation services for cargo transportation with an increase of 1.0 percent, parcel and courier services with 3.7 percent, and medium voltage industrial electricity with 4.3. percent, rail freight transportation rates with 4.7 percent, general cargo motor transportation rates with 5.2 percent and high voltage industrial electricity with an increase of 5.4 percent.
In contrast, air cargo rates and maritime freight rates decreased 2.0 and 1.7 percent year-over-year in March.