The production of iron pellets in Mexico increased 2.4 percent in January, year-over-year, to 520,732 metric tons (mt), a positive trend that broke the negative trend of the last 12 months. Of the three main producing states, Colima stood out with an increase of 11.9 percent and Coahuila with a decrease of 16.8 percent, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
The production of iron pellets is linked to the production of steel. In Mexico, steel production accumulated 14 consecutive annual declines until January (the most recent public information) with an average annual reduction of 10.7 percent.
Of the three main mining and iron pellet producing states in Mexico, the most important with 62.8 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 January, production in the town of Manzanillo increased 6.6 percent or 12,303 mt to 198,770 mt. In the town of Cuauhtémoc, production increased 21.3 percent or 22,643 mt to 128,011 mt. Thus, total pellet production in Colima increased 11.9 percent to 326,781 mt. It is the first annual increase, after three consecutive annual decreases.
According to data from the governmental Mexican Geological Service (SGM), the mining complex located in Cuauhtémoc ies 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 January was 108,745 mt, 4.8 percent, year-over-year. It is the third consecutive annual drop. Its participation in total production in Mexico is 20.9 percent.
The third largest region is in the northern state of Coahuila, the birthplace of the Altos Hornos de México steel company (AHMSA). Iron pellet production in January decreased 16.8 percent or 17,196 mt, totaling 85,206 mt. Coahuila contributes 16.4 percent to the total production of iron pellets in Mexico.