Mexican domestic wire rod prices decreased $42/mt during the last two weeks to settle at US$732/mt ex-mill.
The rebound noted in SteelOrbis’ last report deflated because growth in the construction sector is limping. The results of the new national housing policy and new rules for operating subsidies won’t take affect until the middle of 2015, according to construction sector sources.
The homebuilding process usually takes up to a year and a half, which means that when the Mexican government announced the new national housing policy in February 2013 and updated the guidelines for access to subsidies in June, there were hundreds of properties already under construction. It is estimated that only 10 percent newly-completed homes do not meet the rules of operation in 2014.