During February, the price of Mexican domestic cold rolled coil has varied slightly, with prices averaging US$790/mt ex-mill this week, up approximately $6/mt from last week. Prices in the beginning of the month were closer to US$777/mt ex-mill.
Sources tell SteelOrbis that the trend will likely continue in the following months, with slight increases between US$10-$20/mt per month.
The Mexican CRC market has been significantly affected by an increase in imports from countries without trade agreements. In 2012, CRC production fell 5.6 percent, with a year-end total of 2.630 million tons against the 2.786 million tons produced in 2011.
Apparent domestic consumption grew by only 1.4 percent in the same period, totaling 3.102 million tons in 2012, against 3.060 million tons the previous year.
This reflects the behavior of the trade balance: while CRC imports grew 40.5 percent at the end of 2012, with 623,641 tons, versus 443,722 tons 2011, exports fell 10.5 percent in the same period. In 2012, they totaled 151,346 tons compared to 169,059 tons in 2011.
According to projections by 2013 of the National Chamber of Iron and Steel Industry (CANACERO), apparent domestic consumption of the CRC could grow 8.4 percent in 2013, to reach 3.394 million tons.