Mexican steel rebar producers gave up on higher prices for April shipments and instead prices have slid due to a slowdown in demand, market sources said Tuesday, but noted that a new round of price hikes was expected soon.
"Demand in March slipped and the mills were forced to reduce prices," a mill source said.
Another mill source likewise said consumption dropped last month, "and [the company] needed to adjust steel prices."
"There are construction projects in Mexico that are expected to be started soon, which will boost [steel] consumption," he added.
A distributor said he saw "demand weaker in the past weeks, generating pressure into mills for price reductions."
Both the mill sources said prices were expected to rise again in the near future, but neither had a timeframe for exactly when that might happen. "The intention is to have prices around Peso 11,500 in April, as we expect the market to recover," one said.
S&P Global Platts' Mexican domestic R42-grade rebar monthly price assessment for April fell to Peso 11,100/mt, based on a range of 11,000-11,200/mt, delivered, excluding mandatory VAT, from Peso 11,400-11,600/mt, delivered, in March.
