According to sources close to SteelOrbis, despite the appreciation of the Mexican peso against the dollar at present rates of MXN 18-19 compared to MXN 20-22 that affected the Mexican economy post the US presidential election in mid-November 2016 and peaked in mid-January 2017, HRC prices have not adjusted downward in tandem as expected.
Prices to customers are being heard at MXN 15,700-16,200/mt ($838-864/mt), delivered to customer in April, excluding VAT of 16 percent. This price translates to approximately MXN 15,200-15,600/mt ($811-832/mt) ex-works. A slight domestic price decline from MXN 16,000/mt ($806/mt) ex-works reported by SteelOrbis on March 9, but not sufficient to adjust to the exchange rate improvements and returned market confidence. In dollars, the price increased by $5-26/mt.
One source stated, “Despite the improved exchange rate, the price on steel domestically has not changed much. Downward pressure exists due to cheaper imports despite the import tariffs, but simultaneously, a rumor is circulating that mills in Mexico may try to make some increases in our market given what is happening in the US market.”
$1=MXN 18.74, 4/11/2017
$1=MXN 19.85, 3/9/2017