Mexican steel prices in 2016 have improved nearly 50 percent, from $391/mt to $581/mt, a Mexican bank said this week.
According to Base bank, the increase in Mexican steel prices is a result of recent efforts globally to cut a steel glut, which was due to the deceleration of China’s economy and a weak global economic growth.
The bank noted steel associations from Canada, the European Union, Japan, Mexico, Korea, Sweden, Turkey and the US met in Brussels to discuss the steel crisis and propose solutions to the overcapacity of steel globally.
Base bank said steel prices rose in Mexico due to the appreciation of the currency over the MXN, which is mainly affecting minor producers, which use the steel as a feedstock.
Rising domestic steel prices have resulted in higher costs and lower margins for several industry segments, including the metal mechanic industry, which was affected the most.