Mexican wire rod prices increased US$25/mt during the last two weeks to settle at US$774/mt ex-mill. This increase reflects price levels internationally, especially in the US market.
However, the domestic market has not yet responded to increased demand. Financial sources say it will be very difficult to return to production levels from before the crisis of 2008, when every year, on average, no more than 700,000 homes were built.
"In this setting the market gives priority to development of smaller and less noticeable players, due to the inactivity of large public homebuilders (Geo, Homex, and Urbi)."
On the other hand, the Mexican wire rod market is facing antidumping safeguards in markets to which it exports, as in the case of the United States and Colombia. Regarding the latter, Mexican wire rod producers say that Mexico should be excluded from this duty "because imports from other countries are higher than theirs."