In September, Mexico experienced a remarkable 21.8 percent year-over-year surge in steel consumption, reaching a substantial 2.72 million metric tons, marking the 11th consecutive annual increase and the fourth consecutive year of double-digit growth. This data, meticulously examined by SteelOrbis from the Mexican Chamber of the Iron and Steel Industry (Canacero), reflects a positive trend in demand for steel within the country.
However, juxtaposed against this surge in consumption is the stark reality of liquid steel production in Mexico, which recorded its 10th consecutive annual decline, dropping by 7.2 percent year-over-year to 1.30 million metric tons. This decline is primarily attributed to the prolonged production halt at Altos Hornos de México (AHMSA) since the beginning of the year.
This negative production trend has resulted in a situation where, for the fifth time in the last 11 months, steel consumption has more than doubled the volume of steel produced in Mexico. With only 47.9 metric tons manufactured for every 100 metric tons consumed, the deficit is being compensated through imports.
Breaking the six-month negative trend, the production of finished steel products in September grew by 2.9 percent year-over-year, totaling 1.60 million metric tons. Conversely, the consumption of finished steel products continued its upward trajectory, surging by 22.1 percent compared to the same month last year and reaching a total of 2.40 million metric tons.
Examining the January-September period, liquid steel production saw a significant 12.3 percent decline, totaling 12.11 million metric tons. In stark contrast, liquid steel consumption during the same period increased by 14.5 percent, reaching 24.38 million metric tons.
The manufacturing of finished steel products, accumulating until September, recorded a modest 1.6 percent decrease compared to the same period last year, amounting to 14.48 million metric tons. Meanwhile, accumulated consumption during this timeframe surged by 14.4 percent, totaling 21.48 million metric tons.
Highlighting Mexico's global standing in the steel industry, data from The World Steel Association in 2022 positions Mexico as the fourteenth largest producer of liquid steel globally. As the nation grapples with production challenges, its robust steel consumption underscores the importance of international trade to meet domestic demand.
Vietnam Steel by Hoa Sen Group