Prices for Mexican domestic hollow structural sections (HSS), referenced ASTM-A500, have increased and average of US$7-$9/mt per week for the past three weeks, to settle at US$927/mt ex-mill.
Demand for HSS from the construction and civil engineering sectors have the potential to grow at significant rates if infrastructure projects in the recently unveiled National Development Plan are implemented. However, some construction sector sources said the details of the plan were not clear, so HSS and other construction-related steel producers will have to wait to see how the plan will affect them specifically.
Infrastructure investment growth is critical, say many sources; according to Norman Anderson, president and CEO of CG-LA Infrastructure, Mexico need to triple its investment as a percentage of GDP from 1.5 to 4.5 percent. Other sources said that Mexico needs to invest between $250 and $300 billion per year; foreign investment currently represents $40 billion annually, 15 percent of the total, which is why it is necessary to use public and private capital.