While Deacero does not publish its list or market price levels, the company announced on December 20, 2018 an increase of MXN 1.3/kg (MXN 1,300/mt or US $65/mt). The spokesperson stated that while prices were “decreased by 13 percent in the last semester on rebar grade 42” despite the volatility in the market, due to operational and raw material price increases, the increase would be effective on all new orders and those not already finalized with contracts by January 8.
Deacero listed increases in electricity, transportation, graphite electrodes, and scrap as factors in the price increase. The spokesperson noted electricity increases of 30 percent and 14 percent on diesel prices in the past 12 months. Cement suppliers have announced a 20 percent increase on concrete effective January 2019.
The company also noted volatility and depreciation of the Mexican peso against the dollar as an important factor in the price increase. La Cámara de la Industria de la Tranformación (Caintra) Nuevo León estimates an average exchange rate of MXN 20.36 to the dollar in 2019.
USD = MXN 19.91 (Dec 26)