Mexican galvanized prices fell US$50/mt in the last week, reaching US$900/mt ex-mill. Sources tell SteelOrbis that the drop reflects an overall downtrend for flat prices in general.
In distribution centers, galvanized prices are only $40-$50/mt higher than ex-mill prices, while at the end-consumer level, prices are closer to US$1,143/mt.
Industry sources believe that this is the beginning of an increasingly close competition, which has already begun to reduce margins for distributors. Several new service centers have begun operating in Mexico, especially to serve the automotive sector.
Just this week, Ternium announced the start of the first production tests of cold rolled coil and galvanized equipment installation at its plant in Pesqueria, Nuevo Leon, which will begin in July, with the stipulation to replace imports between 1-1.5 million tons of specialty steels for the automotive industry.