Mexican domestic wire rod prices increased US$6/mt in the last two weeks to settle at US$715/mt ex-mill.
Some of the uptrend has been attributed to growing opportunities in the construction sector. With moderated enthusiasm, industry sources say that small and medium developers "are in a privileged position to meet the demands of big business."
They also indicate that the market share of GEO, Homex and Urbi (which all face significant financial problems) is 17 percent, so that the remainder are scattered among more than 1,200 companies.
"They can meet the demand, but build fewer houses, aided by federal subsidies to the housing sector," sources said. "Indeed, these developers are adapting quickly to new vertical housing policies. They are reacting and taking advantage of the incentives are directed towards them."