Prices for domestic Mexican rebar returned to the levels seen four weeks ago to reach US$689/mt ex-mill, losing the previous gain of US$21/mt in the end of June.
However, in contrast to the wire rod market, the price of rebar has not yet responded to the announcements regarding new rules for housing construction. The finances of housing construction companies have been hit by delays in delivery of government subsidies and payment processes from mortgage agencies, as well as changes in administration and sector policies in Mexico.
The government wants homebuilders to focus on urban development, raising the densification with apartment buildings, and seeking to meet a growing consumer demand for living near work centers and schools.