Mexican rebar prices remained unchanged to start the month of August, with several sources indicating a potential hike through the month, and others skeptical about these efforts given persistent low demand.
S&P Global Platts' monthly assessment for Mexican domestic R42-grade rebar held steady for August at Peso 11,000-11,100/mt ($583-$588/mt), delivered, excluding mandatory VAT.
"We started to see the reactivation of some infrastructure projects, and this could give some boost to rebar demand and prices," a producer source said. He added that mills may try again to boost prices to the 11,500/mt level -- the same mark targeted in the previous month.
Another producer source confirmed the company's goal was to achieve a pricing level of 11,500/mt delivered, but blamed "higher production and logistics costs."
On the buying side, sources said they do not yet see enough demand to justify higher prices.
"I didn't receive any indication from my supplier that prices will go up in August. If they try something, though, I will refuse buying because my inventories are full," a distributor said.
Another source said that the week-long blockades at Mexican railways by striking teachers and their supporters, which affected the local steel industry in the state of Michoacan, may have temporarily inflated some costs and hampered deliveries in the region, "but this won't have a significant weight on negotiations going forward" since protesters have suspended action for the time being.
A third buyer said, "Mills may announce an adjustment from the second half of the month, but only if demand shows any sign of improvement."
