The price of domestic Mexican wire rod increased US$15/mt during the last three weeks, to reach $808/mt ex-mill.
The up-and-down price trend of Mexican wire rod has been attributed more to “bubble speculation”, according to sources, than true supply and demand in the domestic market.
The construction sector in Mexico is weak and sources are skeptical of a revival, because even though the federal government has increased spending by 38 percent, the steel industry is still waiting for a rebound.
“One thing is the money that the government has already sent, but another has already been exercised and spent badly,” said one spurce. “Everything costs more than it needs to, with the difference going into corrupt pockets.”