Mexican domestic cold rolled coil (CRC) prices fell this week to US$798/mt ex-mill, representing a US$5/mt decrease from the previous week, and a US$9/mt drop from the end of March.
While the price of Mexican CRC typically has a close relationship with the price index for CRC in the US, Mexican lawmakers and authorities are pushing activity in the manufacturing industry, which could translate into more orders and higher prices soon.
Particularly, federal deputies support maximizing the benefits generated by exporting firms in the manufacturing sector. To that end, the Legislature LXII of Representatives installed a Special Committee of the Export Manufacturing Industry (IMMEX). Members of the commission stressed the need to establish a regulatory system that is strong and stable--giving certainty and legal security to IMMEX--and is conducive to the national capital industry, so that small and medium enterprises are integrated into nation-wide development through exports.
According to the Ministry of Economy, the IMMEX program is a tool to temporarily import the goods necessary for manufacturing without payment of general import tax, VAT and, where appropriate, antidumping duties. In 2012, IMMEX reached a trade surplus of US$39.416 billion.