Prices for Mexican domestic electro-galvanized sheet increased US$5/mt in the last two weeks to reach the level of US$935/mt ex-mill.
According to industry sources, an extraordinary dynamism in automotive sector is expected in the long term, due to lower production costs compared to other countries such as China and Japan. In Mexico, 90 percent of electro-galvanized sheet production is consumed by automotive manufacturers.
"There is widespread optimism that Mexico could be a powerhouse for automotive export," said one source. But Mexico's challenge is to further integrate into higher value-added activities to deepen the development of procurement and have a greater capacity for local content.
For 2013, income generated by the automotive sector could reach a record level-from January to May alone, income reached US$14.8 billion, 17.2 percent more than in the same period of 2012.