Sao Paulo — Mexican producers have raised their flat steel prices by Peso 500/mt, local distributors and executives from service centers said Friday.
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In late June, sources said they expected new price lists to be released in the first few days of July, but the latest prices were only valid starting Thursday.
Given currency exchange rate on Friday, an increase of Peso 500/mt represents an adjustment of about $31/mt.
With the price hikes, Mexican hot-rolled coil steel is being traded at Peso 10,000-10,100/mt ($628-$634/mt), compared with Peso 9,500-9,600/mt in June; cold-rolled coil at Peso 11,500-11,600/mt from Peso 11,000-11,100/mt in June; and hot-dip galvanized sheet at Peso 13,150-13,250/mt instead of Peso 12,550-12,650/mt.
Mexican steel prices are usually negotiated on a delivered basis for distances up to 200 km, excluding the mandatory IVA tax. The currency exchange rate was Peso 15.92/$1 on Friday.
Local steelmakers do not comment on their pricing policies.
"The mills attributed the adjustment to the 'never-ending' devaluation of the Mexican currency against the US dollar," an executive said.
Nevertheless, sources said the price hike may not stick.