Mexican domestic rebar prices dropped a mere US$1/mt in the last week, settling at the level of US$716/mt ex-mill. The move follows a pattern of small weekly decreases, declining US$1/mt the week prior. Lagging demand for housing construction is to blame for the mild downtrend, according to sources, while economic indicators are not in agreement as to how bad construction demand actually is.
Earlier this week, the Federal Mortgage Society (SHF) said house building in Mexico fell 30 percent in the first quarter of this year, but construction industry sources denied this-they said that construction totals are only 7 percent from the annual target of 500,000 houses.
Additionally, large homebuilders as GEO, Homex and URBI have shown negative results in the Mexican Stock Exchange (BMV) recently while suffering financial problems. However, the National Chamber of Promotion and Development Housing Industry (CANADEVI), which represents 900 construction companies, said that the industry is still progressing, as every day new homes are completed and investments are maintained.