Iron pellet production in Mexico increased 2.8 percent in February, year-over-year, to 478,222 metric tons (mt), the second consecutive increase and the lowest volume in the last 12 months, according to an analysis by SteelOrbis to data from the national statistics agency Inegi.
The production of iron pellets is linked to the production of steel. In Mexico, steel production accumulated for 15 months with consecutive annual declines until February (the most recent public information) with an annual reduction of 10.4 percent on a monthly average.
Of the three main mining states and producers of iron pellets in Mexico, the most important with 60.6 percent of all production is located in the western state of Colima. In that entity, two large complexes stand out: 1) Peña Colorada, a 50-50 joint venture of the Luxembourg-based steel companies: Ternium and ArcelorMittal, and the Las Encinas mining complex, owned by Ternium.
In February, production in the town of Manzanillo increased 16.2 percent or 25,118 mt to 180,060 mt. In the town of Cuauhtémoc, production increased 14.3 percent or 13,743 mt to 109,908 mt. Thus, total pellet production in Colima increased 15.5 percent to 289,968 mt. It is the second annual increase, after three consecutive annual decreases.
According to data from the governmental Mexican Geological Service (SGM), the mining complex located in Cuauhtémoc is Las Encinas de Ternium and the one located in Manzanillo is Peña Colorada.
In the region where ArcelorMittal México operates with its Las Truchas mining complex in Lázaro Cárdenas, in the western state of Michoacán, production in February was 111,853 mt, 0.6 percent less year on year. It is the fourth consecutive annual drop. Its participation in total production in Mexico is 23.4 percent.
The third largest region is in the northern state of Coahuila, the birthplace of the Altos Hornos de México steelmaker (AHMSA). There, production decreased 24.8 percent or 25,193 mt, totaling 76,401 mt.