Even though the price of Mexican domestic cold rolled coil (CRC) dropped US$10/mt in two weeks to the level of US$788/mt ex-mill, auto industry sources in the central state of Puebla say that during this year, growth in the sector from acquiring products in subsidiaries could amount to US$5 billion.
Within the so-called "cluster" of automotive companies in the region there are still significant opportunities for investment; for instance, the Volkswagen assembly plant in Cuautlancigo, Puebla, has needs that are not covered by the providers based in Mexico.
There are roughly 250 suppliers of various size that manufacture auto parts for Volkswagen and deliver directly to it, therefore investments in steel plants like Ternium and AHMSA--major producers of flats products--have a good chance to gain ground in the market.