[ferro-alloys.com]Deacero is raising list prices on domestic rebar grade 42 by Peso 1,300/mt ($65/mt) for orders from January 8, according to a letter sent to distributors.

"During the last semester [of 2018], we have been adjusting down the prices of rebar grade 42; the adjustments were achieved despite the general volatility caused by the instability of the markets," the company said in the letter.

Deacero also commented on the depreciation of the Mexican peso against the US dollar, which has inflated the costs of its main raw materials, including ferrous scrap, electrodes, electric power and transport.

The steelmaker blamed electric power costs, which jumped 30% year on year through December and 11% in the H2, and diesel prices -- which directly impact the cost of transport -- rising 14% on year and 9% in the H2.

There is an expectation that other mills will soon follow.

"I haven't heard from the others yet, but with Deacero blazing the trail, we will hear similar announcements from them," a buyer said.

"I've never known domestic mills to miss an opportunity to raise prices," one distributor said, adding that he will try to fulfill orders by the first week of January, with old list prices.

Although other mills are expected to follow, some market participants have expressed surprise at the timing of the announcement and a sense the increments are a final attempt to put an end to consecutive falls seen in the Q3.

Last week, S&P Global Platts assessed the domestic Mexican rebar grade 42 at Peso 13,350/mt ($669.28/mt). From July to December, rebar prices dropped 12%, after rising over 50% in the first half of the year, according to Platts calculations.

"There are lots of expectations with the new government, and how it will tackle the economy and revive infrastructure and general construction projects," another distributor said, adding he is quite optimistic in terms of steel consumption for 2019.

(S&P Global Platts)

• [Editor:王可]