Mexican domestic hot rolled coil (HRC) prices fell US$14/mt in the last two weeks to settle at US$731/mt ex-mill.
However, according to sources, an extraordinary dynamism in the automotive sector is expected in the long term due to lower production costs compared to other countries like China or Japan.
Financial sources say that automotive companies have substantially increased their investment flows in Mexico in the first quarter with US$1.3 billion, the highest in the history of Mexico's industry.
The potential market of Mexico is close to 1.8 million units, however the continued indiscriminate importation of used vehicles from the United States and Canada to Mexico and the lack of public policies for the renewal of the outstanding units will be obstacles to that goal.