In the last three weeks, the price of Mexican domestic cold rolled coil (CRC) dropped US$14/mt to reach US$868/mt ex-mill.
Three weeks ago, domestic steel producers announced an increase of 5 percent in some products such as steel plate. Many analysts thought the increase would spread to other products, especially flat steel, but the domestic market would not allow it.
Last week, Honda of Mexico explained that the country does not have the caliber and quality of steel to meet the automaker’s specifications, preferring to import sheet rolls for subsequent cutting and stamping.
Where appropriate, Honda of Mexico requires 50 to 70 tons of steel, input that is purchased from the US, Brazil, Japan and Germany. However, the company warned that steelmakers need to make inroads in this niche and also offer competitive prices so other regional markets do not have to rely solely on the domestic market.