Mexican domestic plate prices closed at US$864/mt ex-mill this week, reflecting a US$2/mt decline from the previous week.
Industry sources said there is a global oversupply of steel, more than 600 million tons, of which China comprises 37 percent; Asia (excluding China) makes up 19 percent; and Europe accounts for 16 percent. Sources say this poses a challenge for the steel industry, not only globally, but particularly for Mexico.
One source said that the main cause of the deficit in the Mexican steel industry trade balance is that not all steel products produced are consumed. He cited the automotive and appliance sectors, "which are very demanding in their requirements and qualities," necessitating the need to bring in outside-sourced special steels. "We could say that of all imports, we can offer 30 percent to the production of our mills, but trade liberalization makes these products very competitive with us."