Apparent consumption of finished steel products in the Mexican market in May decreased 11.1 percent, year-over-year, to 2.37 million metric tons (mt). That volume is the second lowest in the last 15 months, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
Consumption was mainly impacted by the problems that the Mexican government experienced since April 15 with the new rules for importing steel products.
The products that saw the biggest decline in consumption in May were hot rolled sheet, wire and wire rod.
On the manufacturing side of finished steel products, May totaled 1.50 million mt, 6.4 percent less, year-over-year. It is the fourth consecutive annual decline and the manufactured volume is the second lowest in the last 29 months. In that period, the lowest was last March with 1.45 million mt.
The products that most impacted production in May were steel plates (sheet and roll), wire and hot rolled coil (HRC).
Production was also moderately impacted by the lower supply of rebar due to the blockade of the ArcelorMittal facilities in the western city of Lázaro Cárdenas, in the Mexican state of Michoacán since May 24. The wire rod plant in the central city of Celaya, Guanajuato, consumes the billet from Lázaro Cárdenas for its production.
In the January-May period, consumption totaled 11.8 million mt, 2.3 percent or 269,000 mt more. Production totaled 7.8 million mt, 4.7 percent or 386,000 mt less compared to the January-May period of last year.