The Mexican rebar market continues to be depressed in terms of demand; however, mills have increased their prices as the cost of raw materials, particularly scrap, has been trending up.
Rebar offers in the Mexican domestic market are now up from the levels seen two weeks ago. Offers went from the levels of Peso 6,400-6,700/mt (US$488-$511/mt) delivered to the customer and including taxes, to a new level of about Peso 7,800-8,000/mt (US$583-$597/mt) delivered to customer's yard and including taxes. However, with the weak demand, it remains to be seen whether customers will accept the new levels.
Rebar prices may continue following the scrap trend as mills are motivated to increase their prices when raw materials increase in order to make profits. At the same time, the soft demand may cause prices to retreat again, especially if distributors start selling at lower prices in order to move product.
On the demand side, again, conditions remain depressed due to the country's economic troubles, though there are some green shoots - there are reports that some steel-intensive government infrastructure projects in Mexico that had been stalled are starting up again, and this is providing at least a minor boost to Mexico's domestic rebar demand.