Mexican domestic hot dipped galvanized (HDG) prices saw an increase of US$7/mt in the last two weeks to settle at US$888/mt ex-mill. However, sources tell SteelOrbis that the small rise in prices is not necessarily a sign of an overall price recovery, as purchase order activity should remain stable.
Part of the pessimism stems from recent downturns in several key Mexican economic indicators: on Tuesday, the Mexican Stock Exchange (BMV) maintained its path of loos, and the Consumer Price Index (IPC) lost 0.84 percent to settle at 40832.48 units.
Additionally, financial agencies surveys purchasing managers have observed a continued downward trend for the fifth consecutive month. For the non-manufacturing sector, data suggest that it will stabilize, but the economic environment will remain fragile to start the third quarter.