Domestic prices for Mexican hot and cold-rolled steel products have gone up for April deals, justified by rising raw materials costs, including scrap, sources said Friday.
S&P Global Platts monthly assessment for hot-rolled coil increased slightly to Peso 14,400/mt ($772/mt) based on a range of Peso 14,300-14,500/mt, from Peso 14,150/mt, based on a range of 13,900-14,400/mt in March.
Cold-rolled coil jumped to Peso 16,550/mt ($887/mt) based on a range of 16,400-16,700/mt, from Peso 15,250/mt based on a range of 15,000-15,500/mt. All the values are on a delivered basis, excluding mandatory VAT.
"Demand is not good and the market is not yet ready to receive such price adjustment, but the mills say they will not concede discounts," a distributor said.
A different source said, "in February mills raised prices and there was chatter the companies would increase prices again, which did not happen in March. Now, they are implementing what was not possible to apply last month."
A third distributor said "mills will keep pursuing higher prices," no matter the market conditions.
ArcelorMittal Mexico said it "maintains a constant commitment with [the] customers and suppliers, working day by day to adapt to the current market conditions in a timely and agile way" and that they "continue to offer products of the highest quality at competitive prices," but did not comment on the current level of prices or about the latest adjustments.
Ahmsa and Ternium did not immediately reply to a request for comment.
