In the last two weeks, Mexican hot dipped galvanized (HDG) prices rose $19/mt to $881/mt ex-mill. Financial sources have indicated that the construction of industrial buildings, especially in the Bajío region, as well as automobile production, have been driving HDG demand.
Auto companies use Mexico's geographical position, and therefore short lead times, to their advantage in supplying the North American market as transport time from the major suppliers in Asia (China, Japan and Malaysia) is significantly longer.
Further, construction and expansion of at least five new industrial complexes will increases the countries production capacity to an excess of 4 million units annually.