Mexican domestic HDG prices fell slightly in the last week, by approximately US$5/mt. Prices are now in the level of US$895/mt ex-mill.
Sources tell SteelOrbis that the forecast for the next few weeks points to a price fluctuation between US$5-$10/mt.
As previously mentioned, the rise of the automobile industry will drive the steel industry in the coming years, but there is still a problem of oversupply due to service centers currently operating at 55 percent capacity in Mexico.
"We will have a more fierce competition, which could keep the underutilization of service centers at the same levels of 55 percent, so it would be convenient to think of a consolidation of the industry," said distributor sources in Mexico.
With new service centers installed, capacity would increase from 2 to 2.5 million tons.