The price of domestic Mexican wire rod increased US$30/m during the last four weeks, to reach $793/mt ex-mill.
Although this represents a relatively significant increase, sources tell SteelOrbis that there is no end-use market reason for this growth.
"If we consider that housing construction has virtually stopped, the increase in input prices could be the start of an inflationary bubble,” one source said.
New rules of construction based on fiscal requirements have arrested the homebuilders sector. And the lack of supply of homes has raised selling prices an average of 8 percent. However, sources believe this trend cannot be sustained.