Producer prices for Mexican steelmakers decreased 16.9 percent, year-over-year, in August, the 11th consecutive annual decline, according to a SteelOrbis analysis of data from national statistics agency Inegi.
Today Inegi released the information on the Producer Price Index (PPI). Producer prices excluding oil and with services increased 0.9 percent, year-over-year, in August. Prices with oil and with services grew marginally 0.1 percent. Annual general inflation (Consumer Price Index) was 4.64 percent.
The prices of the steel industry correspond to what the Inegi calls "steel complexes." The price drop began in October 2022. The most pronounced price contraction in the three products that make it up was in "steel sheet" (without breakdown of the type of sheet), with an annual drop of 20.6 percent. It is the twelfth consecutive annual reduction.
The second most pronounced drop in the "steel complexes" category was in the price of rebar with an annual drop of 15.8 percent, it was the eleventh consecutive annual drop.
The price of the steel slab (also in the steel complex category) decreased 4.1 percent, year-over-year in August. It is the second consecutive annual decline. Except for May and June, prices have dropped since October 2022.
Beyond the concept of steel complexes, other annual price reductions were in galvanized sheet with 19.6 percent, wire rod 17.3 percent, wire 14.0 percent, steel bars 12.4 percent, iron and steel profiles 6.8 percent, sheet cutting and bending 4.2 percent.
Heavy-gauge metal tanks also decreased with 3.7 percent, iron and steel tubes and poles 1.5 percent. The price of iron ore decreased 13.3 percent and the price of mineral coal decreased 10.4 percent.
In contrast, the price of non-motorized steel hand tools increased 11.7 percent, compared to August last year.
The price of electricity for commercial use increased 4.3 percent and medium voltage electricity increased 9.8 percent.