Liquid steel production in Mexico fell in July to 934,000 metric tons (mt), a figure that represents a daily average of 30,129 mt, the lowest figure in at least the last 45 months or, in other words, at least since November 2020, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
In July, production decreased 26.5 percent, year-over-year. Thus, 20 consecutive months of contraction have been accumulated. In the last three months, the reduction was double-digit: May 16.7 percent, June 28.2 percent and July 26.5 percent.
During those three months, part of the facilities of ArcelorMittal, the largest steel company in Mexico, were blocked by the Miners' Union of Congressman Napoleón Gómez Urrutia. The strike lasted from May 24 to July 19. For some undisclosed reason, the company reported that the restart of production at the blast furnace in Lázaro Cárdenas, Michoacán, would take two more months.
The restart date is this week. SteelOrbis requested information from ArcelorMittal to find out when that date will be, but so far there is no response.
Recently, SteelOrbis published that steel production in July registered a contraction of 53.1 percent, year-over-year. It is the second worst drop in Mexican corporate history. The Inegi indicator measures steel production as an index number with a base year (1993 = 100) of comparison.
In addition to the blockade of the miners' union against ArcelorMittal, the Mexican steel industry is affected because since January 2023, the giant steel company Altos Hornos de México (AHMSA), with 5.5 million mt of production capacity, has been paralyzed due to insolvency. This caused Mexico to lose a place in the 2023 ranking of the World Steel Association by going from #15 to #14 in world crude steel production.
On the side of primary steel consumption in Mexico, in July it also remained in negative territory. Consumption was 2.70 million mt, 7.9 percent less, year-over-year. It is the third consecutive annual decline. One element to highlight is that of those three months, July has the highest consumption volume.
In the accumulated to July, production decreased 16.3 percent to 8.1 million mt. Consumption totaled 18.4 million mt, 2.9 percent less than the January-July period of last year.