MEXICO
THURSDAY, JUNE 2, 2016 / VOLUME 1 / NUMBER 1-1
SCRAP
Shredded
Machine shop turnings
Plate & structural 3ft.
No. 1 busheling
No. 1 heavy melt
MXN/MT
USD/MT
$4,587
$4,000
$4,495
$4,495
$4,220
$249
$217
$244
$244
$229
Monterrey consumers kept prices sideways after rising approximately 300 MXN in the
prior week. Consumers held prices steady as they wait to see what happens with the U.S.
settlements as well as when Turkey resumes its imports of raw material, sources said.
The assessed price is sideways for MXN but retreated $1 a tonne USD due to the currency
fluctuation. The USD to MXN exchange rate for the week ended May 27 is 18.44.
MEXICAN HOT-ROLLED BAR TRADING VOLUMES WITH US IN 1ST QTR.
(in tonnes)
90,000
effective week ending May 27, 2016
STEEL LONG PRODUCTS
80,000
SBQ (1” round 1,000 Series)
MXN/MT
USD/MT
$12,471.50
$675
70,000 has been tepid, with few major price or
Special bar quality (SBQ) sentiment in Mexico
60,000
demand fluctuations, market participants
said. Cold-finished bar sales, for instance,
have generally plateaued over the last few
years, though automotive continues as a
50,000
bright spot for the relatively small SBQ market,
40,000 said one hot-rolled bar buyer. “May
(was) pretty slow. April was better than May,” said a SBQ bar buyer and cold-finished bar
30,000
processor. Most SBQ volumes in Mexico are tied up in direct contract negotiations, often
20,000
between mills and original equipment manufacturers (OEMs) and within the automotive
10,000
sector, with very sparse spot tonnage, said
an SBQ distributor.
effective week ending May 27, 2016
0
STEEL IMPORTS (into Mexico from US)
MXN/MT
Rebar
Wire rod
Hot-rolled bar
$18,850.66
$26,442.59
$18,269.06
STEEL EXPORTS (from Mexico into US)
Rebar
Wire rod
Hot-rolled bar
$399.13
$11,456.96
$621.31
30,000
$9,865.22
$534.99
20,000
50,000
40,000
10,000
0
2012
MEXICAN STEEL REBAR TRADING VOLUMES
WITH
USOFSTEEL
IN
1ST
QTR.
VALUE
MEXICAN
HOT-ROLLED
BAR TRADE
WITH
IN 1ST
QTR.
MEXICAN
REBAR
TRADING VOLUMES
WITH
US US
IN 1ST
QTR.
(in (dollars
tonnes)per tonne)
ExportstotoUSUS
Importsfrom
fromUSUS Exports
Imports
$1,400
80,000
80,000
70,000
$1,200
70,000
60,000
$1,000
50,000
$800
40,000
$600
30,000
$400
20,000
60,000
50,000
40,000
30,000
20,000
$200
10,000
10,000
0
2012
2013
2014
2015
2016
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
2015
2016
drop in exports comes on top of a 97.3-percent
year-on-year fall in the first quarter of
$400
20,000
2015, after the International Trade Administration maintained steep dumping margins
$200of Mexican hot-rolled bar exports to the
against Mexican rebar the prior year. The10,000
value
0 through March, down 26.6 percent from
U.S. averaged $534.99 per tonne from January
$0 2012
2012 20132013 20142014 20152015 20162016
2013
2014tonne 2015
2016three months of 2015.
$729.26
per
in the first
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
Exports to US
2014
$1,200
60,000
$1,000
Mexico’s rebar exports to the U.S. were50,000
valued at an average of $399.13 per tonne in the
$800
40,000 per tonne in the same 2015 period. Rebar
first quarter, down 29.6 percent from $566.59
exports to the U.S. slumped 35.1 percent
to$600
1,344 tonnes in the same comparison. The
30,000
70,000
$7,343.99
Imports from US
2013
Mexico imported 29,847 tonnes of steel reinforcing bar from the United States in the first
quarter, down 43.7 percent from 53,011 tonnes in the same period last year. The value
$1022.27
STEEL
REBAR
TRADING
VOLUMES
WITH
USaverage
INUS1STINQTR.
MEXICAN HOT-ROLLEDof
BAR
TRADING
VOLUMES
WITH
USUnited
IN 1ST QTR.
rebar
imports
from
the
StatesMEXICAN
also
dropped,
falling
6.8 percent
to an
VALUE
OF MEXICAN
HOT-ROLLED
BAR TRADE
WITH
1ST QTR.
$1,433.98
tonnes)
of $1,022.27 per tonne from $1,096.46(inper
tonne
the same comparison. Mexico’s
(in tonnes)
(dollars
perintonne)
Exports
to US
Imports
from
USyear
Exports
to US
Imports
from
US to
Exports
to USthe United
Imports
from US bars
$90,000
990.73
80,000
imports
of hot-rolled
from
States fell 9.4 percent
year
on
$990.73
$1,400
per
tonne
from
$1,093.16
per
tonne.
70,000
80,000
60,000
USD/MT
MEXICAN HOT-ROLLED BAR TRADING VOLUMES
MEXICAN
BAR TRADING VOLUMES WITH US IN 1ST QTR.
WITH USHOT-ROLLED
IN 1ST QTR.
2012
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
USD/MT
MXN/MT
MXN = Mexican peso MT = metric ton
(in tonnes)
90,000
Exports to US
Imports from US
0$0
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
Source:
Compiled
by AMM
fromfrom
U.S.U.S.
International
Trade
Commission's
DataWeb
Source:
Compiled
by AMM
International
Trade
Commission's
DataWeb
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
MEXICAN WIRE ROD TRADING VOLUMES
WITH
USSTEEL
INMEXICAN
1ST
MEXICAN
WIREQTR.
ROD
TRADING
WITHUSUSININ1ST
1STQTR.
QTR.
VALUE
OF
STEEL
REBARVOLUMES
TRADE WITH
(in tonnes)
(dollars per tonne)
to US
Imports
fromfrom
US US Exports
Exports
to US
Imports
50,000
$1,600
45,000
$1,400
40,000
$1,200
35,000
$1,000
30,000
25,000
$800
20,000
$600
15,000
$400
10,000
$200
5,000
0 $0
20122012 20132013 20142014 20152015 20162016
Source:
Compiled
by AMM
International
Commission's
DataWeb
Source:
Compiled
by AMM
fromfrom
U.S. U.S.
International
TradeTrade
Commission's
DataWeb
EXCHANGE RATE $1 USD = MXN 18.44 (five day average for week ending May 27, 2016)
MEXICAN STEEL REBAR TRADING VOLUMES WITH US IN 1ST QTR.
VALUE OF
MEXICAN
STEEL
REBAR TRADE
WITH
US US
IN 1ST
QTR.QTR.
VALUE OF MEXICAN STEEL WIRE ROD TRADE WITH US IN 1ST QTR.
MEXICAN
STEEL
WIRE ROD
TRADING
VOLUMES
WITH
IN 1ST
(in tonnes)
IT IS A VIOLATION(dollars
OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
(in tonnes) per tonne)
(dollars per tonne)
ExportstotoUSUS
Importsfrom
fromUSUS Exports
Exports to US
Imports from US
Exports to US
Imports from US
Imports
80,000
$1,600
50,000
$1,600
.
b
b
10,000
$200
0
$0 2012
2012
10,000
0 2, 2016
JUNE
2012
2013
2014
2015
2016
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
VALUE OF MEXICAN HOT-ROLLED BAR TRADE
VALUE
MEXICAN
BAR TRADE
WITH
US1ST
IN 1ST
WITHOF
US
INREBAR
1STHOT-ROLLED
QTR.
MEXICAN
STEEL
TRADING VOLUMES
WITH
US IN
QTR.QTR.
(in tonnes)
(dollars per tonne)
Exports
to US
Imports
from
to US
Imports
from
USUS Exports
$1,400
80,000
70,000
$1,200
60,000
$1,000
50,000
$800
40,000
$600
30,000
$400
20,000
$200
10,000
0$0
20122012
20132013
2014
2014
20152015
20162016
Source:
Compiled
by AMM
U.S. International
Commission's
DataWeb
Source:
Compiled
by AMM
from from
U.S. International
TradeTrade
Commission's
DataWeb
NEWS
VALUESTEEL
OF MEXICAN
STEEL
REBARVOLUMES
TRADE WITH
USUS
IN IN
1ST1ST
QTR.
MEXICAN
WIRE ROD
TRADING
WITH
QTR.
(dollars per tonne)
(in tonnes)
Exports
to US
Imports
from
US Exports
to
US
Imports
from
US
$1,600
50,000
45,000
$1,400
40,000
$1,200 production target of 5 million light
Mexico's
35,000
vehicles
$1,000 "will happen in 2020," Eduardo Solís,
30,000
executive president of Mexican automotive
$800 association AMIA, predicted. This
industry
25,000
compares
with 3.2 million units produced in 2014.
$600
20,000
Solís
termed
the prediction a "hard forecast"—
15,000
$400
as opposed to a "soft forecast"—to indicate that
10,000
it is$200
based on data from original equipment
5,000
manufacturers'
(OEMs') actual production plans
$0
2012 capacity
2013 rather
2014
2016
and0installed
a2015
forecast
2012
2013
2014 than
2015
2016 based
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
on
historical
trends
or International
potential
projects,
heDataWeb
said.
Source:
Compiled by AMM
from U.S.
Trade
Commission's
According to AMIA, almost $20 billion in new
OEM plants and expansions have been built or
started
between
2010
and
VALUE OFconstruction
MEXICAN STEEL WIRE
ROD TRADE
WITH
US 2014.
IN 1ST QTR.
Solís'perdata
(dollars
tonne)coincides with that of global audit,
Exports
to US
Imports from
USIf that
tax and advisory firm KPMG
LLP.
5 million
$1,600
target is hit, according to a KPMG report, Mexico's
$1,400of light vehicle production in North
share
America
$1,200 will jump to 27.5 percent in 2020 from 18.7
percent in 2014. It will also equal 40 percent of the
$1,000
then-projected
production volume in the United
States.
$800
$200
20132013
2014
2014
20152015
20162016
$0
2012
2013
2014
2015
2016
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
VALUE OF MEXICAN STEEL REBAR TRADE
WITH
USMEXICAN
INWIRE
1STROD
QTR.
MEXICAN
TRADING
WITH
QTR.
VALUESTEEL
OF
STEEL
REBARVOLUMES
TRADE WITH
USUS
IN IN
1ST1ST
QTR.
(in tonnes)
(dollars per tonne)
to US
Imports
from
USUS Exports
Exports
to US
Imports
from
50,000
$1,600
45,000
$1,400
40,000
$1,200
35,000
$1,000
30,000
25,000
$800
20,000
$600
15,000
$400
10,000
$200
5,000
0 $0
2014 20152015 20162016
20122012 20132013 2014
VALUE OF MEXICAN WIRE ROD TRADE
WITHOFUS
IN 1STSTEEL
QTR.WIRE ROD TRADE WITH US IN 1ST QTR.
VALUE
MEXICAN
(dollars per tonne)
Exports to US
Imports from US
$1,600
Source:
Compiled
by AMM
from
International
Trade
Commission's
DataWeb
Source:
Compiled
by AMM
from
U.S.U.S.
International
Trade
Commission's
DataWeb
VALUE OF MEXICAN STEEL WIRE ROD TRADE WITH US IN 1ST QTR.
(dollars per tonne)opens sheet fabriLight vehicle production to Tenere
Exports to US
Imports from US
$1,600
hit 5M units by 2020: AMIA cation
facility in Monterrey
$1,400
Tenere
$1,200 Inc. has opened a sheet metal fabrication
operation that will target the industrial and
$1,000
telecommunications
industries in Monterrey.
“Tenere’s
international expansion is a critical step
$800
in providing high-quality manufacturing solutions
$600
for our customers,” president and chief executive
$400Greg Adams said in a statement. “The new
officer
facility
$200 will allow us to better serve our customers and
prospects in that region who value our engineering
$0 flexibility and single source solution.”
support,
2012
2013
2014
2015
2016
ThisCompiled
marksbythe
of two
phases
Source:
AMMfirst
from U.S.
International
Tradeplanned
Commission'sat
DataWeb
the facility, a company spokeswoman said, adding
that the second will include a painting line for
Tenere’s steel fabrication services, as well as the
ability to powder coat parts it manufactures.
“We have been extremely impressed with
the quality of work and level of professionalism
demonstrated by the Mexico work force,” Dan
Jackson, executive director of the expansion, said.
“They are a natural fit into Tenere’s employee
culture and are focused on ensuring the highestquality service to our customers.”
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
2012
2013
2014
2015
2016
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
Some key employees were trained at Tenere’s
Wisconsin facilities, the company noted.
The 103,000-square-foot facility will provide
soft tool metal fabrication and assembly services.
Processing capabilities include laser cutting,
punching, bending, pressed hardware and welding.
Tenere’s presence in Monterrey represents
the Dresser, Wis.-based company’s first
international operation.
Automakers investing
Among the new projects announced in Mexico
since 2014 are Ford Motor Co.'s $1.3-billion
Chihuahua engine plant. Dearborn, Mich.-based
Ford will also build a $1.2-billion transmission
plant in Guanajuato.
Ingolstadt, Germany-based Audi AG also plans to
build a $1.3-billion auto assembly factory in Puebla.
Zama, Japan-based Nidec Tosok Corp. has
already broken ground on an $86-million valve
plant at Colinas de San Luis Industrial Park in San
Luis Potosí.
Earlier this year, Tokyo-based Kayaba Industry
Co. Ltd. started operations at it $80-million KYB
Shock Absorbers plant at Guanajuato Puerto
Interior in Silao, Guanajuato.
$600
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$400
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2012
b
2013
2014
2015
2016
Source: Compiled by AMM from U.S. International Trade Commission's DataWeb
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