In the past four weeks, the domestic price of Mexican rebar rose US$4/mt to reach US$481/mt ex-mill.
Due to parity between the peso against the dollar, homebuilders are paying between 2 and 4 percent more to build a house, which impacts buyers, because although many of the inputs are dealing Mexicans are trading at international prices, such as steel or cement, the latter has increased to 26 percent so far this year. The metal has not risen much because there has been a lot of cheap Chinese steel imports.
A construction industry source explained that the exchange rate variation and sometimes the regulation of the sector is what most impacts the developer, who eventually left with a profit or gain 10 percent of the total cost, so all these factors inhibit the growth of construction in the country.