After falling nearly US$20/mt at the end of April, domestic steel plate prices in Mexico recovered in the last two weeks, rising a moderate US$3/mt to reach the level of US$837/mt ex-mill.
The recovery in prices is partially attributed to a steady increase in consumption. According to the National Chamber of the Iron and Steel Industry (CANACERO), apparent domestic plate consumption is forecasted to increase 12 percent this year to reach 3.4 million tons, and long-term outlooks predict that plate consumption will reach 4.6 million tons in the next five years.
Consumption based on government infrastructure projects is expected to increase once President Nieto pushes through his "Pact for Mexico" financial reform initiative, which Congress should approve shortly. The reform will encourage the banking sector to provide further credit to improve the economy, particularly regarding infrastructure construction. Already, the expansion of the Ports of Altamira, Tamaulipas and Lázaro Cárdenas, Michoacán, promise increased domestic steel demand for the period of 2013-2018.