Mexican longs prices start to sink again under burden of weak demand

Friday, 02 October 2009 02:21:02 (GMT+3)   |  
       

Despite mills' attempts to raise prices a month ago, Mexico's domestic long product prices have fallen since last week, as weak demand continues to take a heavy toll on the market.

Buyers of rebar in Mexico report that producers have issued new pricing which puts most domestic rebar offers at about Peso 8,000 to 8,200/mt (US$589 to $603/mt), delivered, plus taxes. This compares to a price range of Peso 8,200 to 8,400/mt last week.

Meanwhile, Mexico's domestic low carbon wire rod market is reportedly even weaker than the rebar market, with most domestic low carbon wire rod offers now ranging from approximately 8,200/mt to 8,400/mt (US$603 to $618/mt) delivered, plus taxes. This range is down by about Peso 300/mt  (US$20/mt) since last week, when most offers ranged from Peso 8,500 to 8,800/mt.

Mexico's domestic longs prices have also declined even more sharply since last week on a dollar basis, due to further depreciation of the Mexican peso against the USD.

In late August, Mexican longs mills attempted to raise rebar prices to Peso 8,700/mt and wire rod to Peso 9,000/mt but these attempts proved unsuccessful.

All in all, in spite of some supply and scrap-driven up-ticks seen in Mexico's longs markets earlier this year, Mexican longs have seen very soft demand in the last couple months and Mexico's longs are projected to take a longer time to recover than the market of their neighbor to the north. Still, many companies are hopeful that construction activity in Mexico will start to trend up in early 2010 and bolster the longs market in turn.

The latest figures on Mexico's construction data still show a downward trend, with a report issued by the National Institute of Geography and Statistics (INEGI) this week indicating that domestic construction activity declined in July from June.


Similar articles

Slowdown in Turkey’s steel exports continues in September

17 Sep | Steel News

Weekly US roundup: To stock or not to stock—that is the question

30 Aug | Steel Matters

Weekly US steel roundup: Week 33

23 Aug | Steel Matters

Attendees of the SteelOrbis Steel Trade conference "look for the light"

13 Jul | Steel Matters

Fluctuations continue in China’s longs market

30 Nov | Longs and Billet

Chinese domestic longs prices start to pick up

23 Nov | Longs and Billet

Domestic, import price trends clash in US wire rod market

18 Nov | Longs and Billet

Chinese long product prices continue to rise on a fluctuating trend

16 Nov | Longs and Billet

US rebar market remains under pressure despite Nucor price move

11 Nov | Longs and Billet

US wire rod offers trailing scrap prices downward

11 Nov | Longs and Billet