In the last two weeks, Mexican domestic HDG prices saw a slight increase of about US$5/mt, to reach the level of US$860/mt ex-mill. Relatively steady demand is behind the minor uptick in prices, although overall indicators for the product are mixed.
According to CANACERO, HDG production rose 6.8 percent in Q1 2013 compared to Q1 2012, reaching 745,672 mt, while apparent domestic consumption fell 9.5 percent, totaling 605,672 mt. During the same period, imports fell 29.8 percent year-on-year to total 206,349 mt, and exports grew 8.8 percent to total 76,257 mt.
Additionally, economic firm Scotiabank indicated that the Mexican economy as a whole should gain strength this year, supported mainly by the service sector along with some branches of the manufacturing industry. Other financial sources hope the automotive sector in particular, which can be volatile, will remain attractive to investment in the long-term.