Mexican domestic HDG prices fell US$10/mt in the last two weeks to the level of US$850/mt ex-mill, in part due to anemic growth in the manufacturing sector.
Although manufacturing grew 0.71 percent in February compared to January, the year-on-year comparison showed a 0.9 percent decline due to low production of basic metals, electrical appliances and accessories, chemical industry, machinery and equipment, among others.
But the manufacturing industry in the northern state of Nuevo Leon (with its industrial capital Monterrey) is more optimistic; sources expect the sector to grow 4.6 percent this year or more, driven by sectors that maintain significant growth, especially regarding exports, such as aerospace, automotive, appliance, agro-food, and nanotechnology.
Industry sources say that they are working to develop local suppliers to reduce or remove import competition and include companies within the supply chains of large companies.
The manufacturing sector of Nuevo León accounts for 11.1 percent of gross domestic product (GDP) for total domestic manufacturing.