Prices for Mexican domestic wire rod fell US$4/mt in the last two weeks to settle at US$739/mt ex-mill. The decline reflects stagnant demand from the construction sector, as sources warn that little movement is in the works since federal, state and municipal governments already owe debts to construction firms in the country.
In the absence of government payments, at least 2,000 construction companies, especially smaller enterprises, are in a critical situation--but large corporations are not entirely exempt.
The sector hopes that the second half of the year will register a revival because builders already have bids and are focusing on projects that are integrated into the National Infrastructure Plan and improvements to the Public Works Law. However, sources say the industry will not see palpable positive results from it until 2014.