HRC prices, sales rising in Mexican distribution sector

Prices for hot rolled coil (HRC) have been rising in the Mexican distribution chain over the past couple of months on increases imposed by local steelmakers, distribution sources told Steel First.

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HRC prices have gone up by an average of 4% since November last year, a sales executive from a major service centre in Mexico City said.

“Shipments also increased in the same period, by 18%,” he said, citing significant investments in the construction sector.

“In November last year our prices were about 500 [Mexican] pesos [$39.50] [per tonne] cheaper than in January 2013, and prices are expected to continue increasing this year,” he added.

Non-pickled HRC sales prices for material 3ft to 4ft wide are now about 10,775 Mexican pesos ($852) per tonne.

The price goes up to about 13,700 Mexican pesos after including value-added tax (IVA) of 16%, plus transport costs and insurance in the metropolitan area of Mexico City.

Prices for pickled HRC in widths of less than 4ft are about 14,150 Mexican pesos, including IVA, transport and insurance costs.

An executive from a second service centre, also in Mexico City, said that his company’s HRC sales volume increased by 30% early in 2013.

Non-pickled HRC 0.6-3.4mm thick costs about 12,600 Mexican pesos, including IVA, transport and insurance costs.

Prices for pickled HRC in widths of less than 4ft are about 13,300 Mexican pesos, including IVA, transport and insurance costs.

A source at a third service centre, also located in Mexico City, said that non-pickled 10-24 gauge HRC costs about 13,000 Mexican pesos including IVA, transport and insurance costs.

None of the sources, however, disclosed how much their companies are paying for HRC sold by Mexican steelmakers such as Ternium México and Altos Hornos de Mexico (Ahmsa).

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