Mexican rebar prices have slightly increased since last week while wire rod prices have continued to remain stable.
Most transactions in the domestic Mexican rebar market slightly increased to the levels of Peso 8,200 to 8,400/mt (US$609 to $624/mt) compared to last week's prices of Peso 8,000 to 8,200/mt. Prices are delivered, plus taxes (15 percent). The current market price range does not yet reflect the full price increase that Mexican rebar producers have tried to push through; however it represents an improvement over last week.
Domestic low carbon wire rod transaction prices in the Mexican market are unchanged from last week and range from Peso 8,500 to 8,800/mt (US$631 to $653/mt) delivered, plus taxes.
Market players have started witnessing a reactivation of the construction sector, led by government building projects, which have resulted in a small uptick in demand in recent weeks; nevertheless, the overall pricing trend for Mexico's domestic longs continues to be sideways as the market doesn't seem ready to accept sharp price increases yet. Distributors comment that the market will not allow price levels to rise much despite mills' price hike attempts as demand is still weak on the whole, and if domestic prices climb too high, buyers may turn to imports.
In other news regarding affecting the Mexican long product market, the strike at ArcelorMittal's Lázaro Cárdenas steel mill in Mexico's Michoacán state has ended as of this week. The month-long strike had a modest impact on domestic rebar supplies, and the cessation of the strike will result in more supplies entering the market, thus potentially causing some minor softening in the market, or at the very least, it may take the wind from the producers' sails as regards their upward pricing expectations.