Producer prices for Mexican steelmakers decreased 15.4 percent, year-over-year, in June, the ninth consecutive annual decline, according to a SteelOrbis analysis of data from national statistics agency Inegi.
For the month of June, the drop of 15.4 percent is the most pronounced since the Producer Price Index (PPI) of the steel sector was measured (2011).
In the broader economy, producer prices excluding oil and services increased 1.1 percent, year-over-year, in June. Prices with oil and with services decreased 0.1 percent. The PPI contrasted with the annual inflation (Consumer Price Index, CPI) for June, which increased 5.1 percent.
The prices of the steel industry correspond to what Inegi calls steel complexes. The sharpest price contraction was in "steel sheet" (no breakdown of sheet type), down 19.2 percent year-over-year. It is the tenth consecutive annual reduction.
The second most pronounced price reduction was in wire rod with a drop of 17.1 percent. In addition to the fact that it is the ninth consecutive annual drop, it is also the most pronounced in that period.
In contrast, the price of steel slab increased for the second time in a row with an annual increase of 1.9 percent. With this second increase, the downward trend that was registered from October 2022 to April 2023 was broken.
Beyond the concept of steel complexes, the price of galvanized sheet decreased 18.2 percent, year over year, in June. The price of wire rod decreased 17.6 percent, wire decreased 10.1 percent, steel bars decreased 9.7 percent.
The price of iron and steel profiles decreased 5.0 percent and the prices of sheet cuts and bends decreased 3.1 percent.
The price of high-voltage electricity increased 10.3 percent annually in June. Medium voltage electricity increased 7.5 percent.