Mexican domestic wire rod prices increased by US$4/mt during the last two weeks to reach US$738/mt-ex mill. Although the increase was slight, construction industry sources tell SteelOrbis that they are hopeful projects related to the National Infrastructure Plan will soon lead to a recovery in the sector.
Construction sector investments for 2013 are expected to reach US$1.6 million, of which 60 percent would come from private banks and 40 percent of the federal government. However, considering that the resulting programs are multi-year investments and involve a wide portfolio of projects, the actual recovery might not be in full swing until next year.
In the first quarter of this year, wire rod production fell 3.5 percent to accumulate 614,997 tons versus 637,816 tons in the same period of the last year. Meanwhile, apparent domestic consumption grew 3.2 percent to accumulate 557,779 tons against 540,549 tons in the same period of 2012. During this period, both imports and exports fell--imports by 38.5 percent and exports by 40.5 percent past--as the domestic market absorbed much of the national production.