In the past two weeks, the domestic price of Mexican rebar fell US$35/mt to reach US$600/mt ex-mill.
Although the price decline was relatively significant, sources say there is “a light at the end of the tunnel” regarding oficial announcments of the construction of 46 new highways in Mexico, comprising 3,000 kilometers (1,864 miles) of roads.
Despite the outlook for infrastructure-related steel demand, construction activity in Mexico fell by 0.6 percent in the second quarter compared with a 2.6 percent drop in the first quarter.
“Construction has bottomed out and it is expected that during the second half of 2014 it will contribute to the growth of GDP of Mexico,” financial sources said.