Mexican domestic hollow structural sections (HSS), referenced ASTM-A500 GB, have continued to fall in the last two weeks, dropping US$9/mt to the level of US$1,012/mt ex-mill.
Nevertheless, demand in the long-term is expected to rise, as construction sources say that infrastructure investments in Mexico could explode in the upcoming years, with both public and private investment of up to 20.8 billion pesos through the reforming of legal frameworks that determine how to plan and implement public resources.
"Mexico is a country that requires higher levels of investment in infrastructure construction, for public and private investments are made now account for around 11 percent of gross domestic product (GDP), while countries such as India and Korea exceed rates of 30 percent and China more than 40 percent a year," sources said.
Further, sources told SteelOrbis that they believe the problem is with prevalent inhibitors of infrastructure projects such as the lack of long-term planning; opportunity in the offices of investment budget authorization; excessive time for authorization of budget movements and to obtain registration in the project portfolio; early closure of the budget year; and incomplete executive projects and a lack of budget for them.
Other industry sources were more optimistic, indicating that the second half of the year will have good news regarding the launch of infrastructure plans.