Mexican domestic hot rolled coil (HRC) prices fell US$4/mt in the last two weeks to settle at US$742/mt ex-mill.
The small downward variation is linked to the behavior of international prices, especially those in the NAFTA region. However, domestic producers are betting on the performance of the US economy and particularly its automotive market to boost growth in production and demand levels.
For example, Altos Hornos de México (AHMSA) achieved a record growth in productivity of 7 percent in 2013 compared to the same period in 2012. The bulk of the increase was attributed to steel production for construction, metalworking, automotive, white goods and oil industry, mainly hot and cold rolled sheets, tin plate and structural shapes, and plate in sheet and roll.
For the domestic automotive sector, the growth of the automotive market in the United States will also be a growth factor for the Mexican industry; one source explained that "if a growth of 7 percent recurs this year, it would represent and additional 1 million units sold in that market."