Mexican domestic hot rolled coil (HRC) prices have remained stable in the last two weeks, not varying from the current level of US$713/mt ex-mill.
However, increased demand from the automotive industry should lift prices in the long term, as industry sources disclosed that the total production in the first four months of the year rose 5 percent, from 920,127 units in 2012 to 966,337 in 2013.
Additionally, they forecast that by the end of this year, the industry will reach a production total of 3 million vehicles, based on the consolidation of operations in plants that are already established in Mexico. However, in five years, automotive manufacturing volume will reach 5 million due to new investments and announced plants that are under construction in the short term.
On the other hand, according to the US Commercial Consul in Monterrey, John Howell, economic cooperation between Mexico and the United States is growing, and there are increasingly more opportunities for Mexican companies in the United States and US companies in Mexico, he said.
For the industrial sector of northern Mexico--where there are large steel mills, as Ternium Mexico and Altos Hornos de Mexico--US companies have very high business expectations in the areas of automotive, appliances and electronics, as well as aerospace development.