Mexican domestic welded steel pipe prices closed at US$995/mt ex-mill this week, reflecting an increase of US$25/mt in the last two weeks. Meanwhile, structural steel tubing prices fell US$8/mt in the last two weeks down to US$879/mt ex-mill.
Sources hope that demand for pipe will start to improve once a new energy reform proposal announced by President Enrique Pena Nieto this week is implemented, with pushes toward the use of 50 percent of domestic steel in energy-related infrastructure.
The strategy presented by the president to increase natural gas supply includes: increasing hydrocarbon injection vessels through the port of Manzanillo, Altamira; converting consumption Pemex and CFE to other fuels to release more gas to the industry; and strengthen the system of pipelines, particularly the Ramones, which will be finished by middle of next year.