Mexican domestic hot dipped galvanized (HDG) prices fell US$5/mt in the last two weeks to reach US$934/mt ex-mill.
However, the meager drop does not appear to indicate a long-term impact, according to sources.
Sources close to General Motors Mexico said the automaker’s purchases from suppliers has already grown 16.66 percent in 2014 compared to last year. In 2013 the company made purchases from Mexican suppliers for about $12 billion and this year it expects to reach a figure of $14 billion.
"The industry has not grown this year so far as much as it did last year, however, the months of July and August mark an interesting rebound, and it remains to be seen if it is not a temporary situation," one source said.