Mexican domestic HDG prices increased by US$5/mt in the last two weeks, to reach the new level of US$855/mt ex-mill. While economic indicators point to a potential softening of demand in the near-term, other data show production decreases that could constrict supply.
According to Mexican official data concerning imports, particularly machinery and equipment, the first quarter has seen a contraction of 7.5 percent on the purchase of capital goods, and 3.6 percent relating to intermediate inputs. This suggests that the manufacturing sector is focusing on investment instead, which could lead to lower production in the coming months.
However, the US Commercial Consul in Monterrey, John Howell, said Mexico's economy will maintain strong growth in the next 10-20 years, which will benefit US companies. At the opening of the exhibition Metalform, Fabtech, Weldmex and Coatech 2013, Howell stressed that the automotive, appliance and aerospace sectors will continue to rise in this country.