In the past three weeks, the domestic price of Mexican rebar increased US$40/mt to reach US$715/mt ex-mill
Some distributors are offering it to end-users at levels up to US$825-$850/mt, but sources tell SteelOrbis that domestic demand cannot support these costs.
The reality is that the situation for Mexican rebar is very complicated due to the local construction sector, where traditionally almost 60 percent of the production of this product is directed.
Moreover, the principal destination market, the US, has recently brought preliminary fees up 66.7 percent on rebar imports from Mexico. Mexican mills are already searching for alternative foreign markets for their rebar exports. The situation is "a nuclear bomb," said Raul Gutierrez, CEO of Deacero.
Additionally, apparent domestic consumption during the first two months of 2014 fell 7.3 percent (469,577 tons vs. 506,607 tons in 2013), while production fell almost 2 percent (589,500 tons vs. 600,480 tons in 2013).