In October, Mexican steel product imports experienced a robust growth of 34.7 percent year-over-year, reaching a total of 1.08 million metric tons, as reported by the Mexican Chamber of the Iron and Steel Industry (Canacero) and analyzed by SteelOrbis.
During the same period, the import of finished steel products to Mexico significantly outpaced exports, reaching 4.5 times the volume. In contrast, the export of finished steel products faced a decline of 33.1 percent year-over-year in October, amounting to 243,000 metric tons. This marks the 14th consecutive annual drop and represents the lowest exported volume in the last 35 months, dating back to December 2020.
The United States emerged as the primary contributor to Mexican steel imports in October, supplying 320,000 metric tons, a notable increase of 16.8 percent year-over-year. This volume accounted for 28.9 percent of the total imported by Mexican steelmakers, surpassing the 16.4 percent share held by Mexico's second-largest steel partner, South Korea, which contributed 181,000 metric tons, reflecting a 42.5 percent rise.
Japan and China also played significant roles in Mexican steel imports, contributing 154,000 metric tons (13.9 percent) and 123,000 metric tons (11.1 percent), respectively. Both countries demonstrated annualized increases of 26.2 percent and 33.7 percent, respectively. Notably, Germany and Vietnam showcased remarkable annual increases of over 170 percent in exports to Mexico, supplying 72,000 metric tons and 41,000 metric tons in October.
On the export front, the United States received the majority share, accounting for 79.0 percent of the total with 192,000 metric tons. However, this figure represented a significant annual decrease of 22.9 percent or 74,000 metric tons compared to October of the previous year. Overall, exports of finished steel products totaled 243,000 metric tons in October, indicating a 33.1 percent decline or 120,000 metric tons less compared to the same month in 2022.
Examining the cumulative data from January to October, imports totaled 10.67 million metric tons, marking a substantial increase of 21.7 percent compared to the same period in the previous year. In contrast, exports faced a significant contraction, totaling 2.83 million metric tons and reflecting a 34.0 percent decrease during the same period. The dynamics of the Mexican steel market suggest a complex interplay of factors influencing trade patterns and highlighting the need for ongoing analysis and strategic considerations within the industry.
Vietnam Steel by Hoa Sen Group