Mexican domestic welded steel pipe prices closed at US$978/mt ex-mill this week, an increase of US$3/mt against prices reported two weeks ago.
Additionally, structural steel tubing prices fell US$4/mt in the last two week to reach the level of US$887/mt ex-mill.
The domestic market was not exactly accepting of the last big jump in Mexican pipe prices three weeks ago, reflected in the price variations this week that are expected to continue. One factor in the weakened prices was the launching of Pemex's second phase of The Ramones pipeline, which caused an "overdraft" in prices.
"Supply and demand are behaving in a more healthy way, which benefits the local value chain and producers who demand greater participation in these projects. The domestic industry knows it must adjust prices if it really wants to get 50 percent of market share, which is what they demand from the government," said one industry source. "Quality is not only required for the works, but also competitive prices."