Domestic Mexican wire rod prices fell US$5/mt in the last two weeks to settle at US$734/mt ex-mill. However, sources say any further declines in prices will be minimal due to the optimism in the construction market.
However, some issues still exist that could affect prices, such as financial problems facing major residential developers URBI, GEO and Homex. Although, "if they reduce their rate of production," said one source, "there are other competitors in the market that can meet them." According to sources, there is now a historical demand of 9 million homes, which will be served with or without the big developers.