Mexican domestic wire rod prices saw a slight US$5/mt increase in the last two weeks to settle at US$743/mt ex-mill. Although the increase is gradual, sources still believe they are positive "small steps" in the face of a slow performing construction sector in Mexico.
After President Nieto presents the new operating rules to govern the sector on May 30, industry sources expect a transition period to learn and adapt to guidelines the government says will consolidate construction planners, builders, marketers and sellers--not weaken it, as some fear. Overall, the reaction from major homebuilders is expected to be positive. "To the extent that the government shows its proposal is serious, we believe that we will gain confidence," sources said.