Prices for domestic Mexican steel beam IPR (ASTM-A6) decreased in the last week by about US$8/mt, falling to the level of US$864/mt ex-mill. Meanwhile, in the same period, prices for steel beam I (ASTM-A36) jumped US$15/mt to reach the level of US$869/mt ex-mill. While demand for the different products are partially driving their price trends, sources say demand overall should lift this year once US$75 billion in infrastructure construction investments makes its way into the market.
Among the initiatives sources think will trigger demand for beams are infrastructure rail projects announced by the federal government, such as passenger railways from Mexico-Queretaro, Mexico-Toluca or the trans-peninsular railway in Yucatan. Additionally, many in the industry are urging the government to accelerate the development of large projects such as the building of the new airport in Mexico City.
Last week, after a visit from the President of the Republic of China, Xi Jinping, the two countries signed a Memorandum of Understanding on strengthening cooperation in infrastructure construction, according to the Ministry of Communications and Transport (SCT).