Mexico domestic HRC prices increased this week given stronger demand and rising raw materials costs.
According to sources close to SteelOrbis, the rising costs of scrap, coking coal, robust domestic demand, and higher firm import offers of steel goods has motivated mills to increase domestic prices of finished and semi-finished steel products. Specifically, HRC offers are now being heard at 9,500-10,000/mt ($505-$532/mt) FOB mill. This reflects an increase of 900 pesos/mt or $42/mt in dollar terms from the low end of the range reported early this week.
A steel center contact commented, “According to mill traders, Mexican prices were dampened too far by the recent declines in prices from the US and these new prices are incorporating the international upward trend, strong domestic experience, recent US price increase announcements which will likely be followed by an additional increase in the near future as raw material prices increase, and tight supply in short term.”
$1= MNX 18.81