In the last few weeks, Mexican hot rolled coil (HRC) prices have experienced incremental gains, with prices rising US$5/mt this week. The new general price level is US$733/mt ex-mill.
However, prices could be impacted in the coming months by a rebound in production-the auto industry is expected to increase demand dramatically, and steel producers also expect that President Enrique Peña Nieto will enforce policies of the Trade Practices Unit (UPCI) of the Secretariat of Economy (SE) to combat unfair import competition that has forced some Mexican companies to reduce production by up to 40 percent.
Flat steel products are the most affected by increased imports from countries without trade agreements. According to Alonso Ancira Elizondo, president of National Chamber of Iron and Steel Industry (CANACERO), the industry needs "a flexible approach to address unfair practices, and to put a safeguard against countries that provide subsidy through grants of money or directly their products."