Exports of finished steel products manufactured in Mexico totaled 287,000 metric tons (mt) in February, down 17.8 percent, year-over-year, the 18th consecutive annual drop. In contrast, imports increased 11.5 percent, the 12th consecutive annual increase, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
Imports of finished steel products to Mexico accumulated 12 consecutive months of constant increase. In February 11.5 percent, year-over-year, to 990,000 mt.
In exports, the most impacted product was rebar with a drop of 55 percent, going from 40,000 mt to 18,000 mt. Cold rolled sheet coil decreased 51.2 percent, year-over-year, to 20,000 mt.
By country, exports to the United States decreased 18.4 percent or 47,000 mt to 209,000 mt. With that volume, that country concentrated 72.8 percent of international steel sales from Mexico. Although its participation is minimal, exports to Canada increased 160 percent to 13,000 mt. That volume represented 4.5 percent of the total.
Regarding imports, by product, the largest increases were in the import of cold rolled coils (CRC) with an increase of 57.3 percent, year-over-year, in February to 118,000 mt.
Imports of hot rolled coils (HRC) increased 32.7 percent to 130,000 mt, alloy steel flats increased 23.2 percent to 138,000 mt.
International purchases of galvanized sheet (HDG) increased by 12,000 mt or 9.8 percent, year-over-year, in February to total 135,000 mt. The United States sold 329,000 mt to Mexico, 8.9 percent less. That volume represented 33.2 percent of the total. The second largest steel partner remained South Korea with 153,000 mt, 17.7 percent more, a volume that also represented 15.4 percent of the total.
China was moved from third position to fourth by Japan. In February, Japan increased its exports to Mexico by 126.2 percent to 147,000 mt, a volume that represented 14.8 percent of the total.
Imports of Chinese steel to Mexico decreased 43.9 percent, going from 123,000 mt to 69,000 mt. Thus, its participation in the total decreased from 13.9 to 7.0 percent. This is explained by the 25 percent tariff that the Mexican government decreed in August of last year on steel imports for countries with which Mexico does not have a free trade agreement.
Vietnam's imports increased 204.5 percent to 67,000 mt. Its market share with that country with which it has a trade agreement (Trans-Pacific Partnership, TPP). In February participation went from 2.5 to 6.8 percent of the total. It is important to remember that in January, Vietnam's steel imports increased 452 percent.
Mexico is a steel deficit country, in February it was 703,000 mt, 30.4 percent more.
In the first two months, imports of steel products totaled 1.97 million mt, 14.4 percent more compared to the first two months of last year. Exports decreased 16.6 percent to 547,000 mt.