Mexican domestic hot rolled coil (HRC) prices increased a mere US$3/mt in the last two weeks to settle at US$737/mt ex-mill.
Although HRC prices have shown small variations in the past four weeks, industry sources are optimistic about the demand for next year. The start of operations in February of Mazda and Honda, as well as auto parts companies and a Toyota transmission plant in 2015, will create around 9,000 new jobs in Guanajuato, according to industry experts.
Meanwhile, financial sources state that 285,200 cars were manufactured in October, exceeding totals from October 2012 by 1 percent, while vehicle exports advanced 11 percent and sales grew 6.1 percent.
"US demand is crucial to foreign automotive sales," said one source, while also pointing out that the evolution of the automotive sector depends on even more demand for cars in the US, so the confidence of consumers in the country is essential.