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Mexican steel production down 12 percent in August

Wednesday, 04 October 2023 23:55:40 (GMT+3)   |   San Diego
       

With this negative production trend, it is the fourth time in at least the last 10 months that consumption doubled the volume of steel produced. For every 100 mt consumed in August, Mexico manufactured only 45.6 mt, the rest was compensated with imports.

The volume of liquid steel production in August is the third lowest, at least since November of last year (10 months). The maximum volume of that period was in November with 1.49 million mt. At that time, Altos Hornos de México (AHMSA) was still producing; However, due to a liquidity crisis, it stopped its production from the beginning of 2023.

Despite lower production, apparent steel consumption in Mexico remains on an uptrend. In August it increased 21.1 percent, year-over-year, to 2.87 million mt, the second largest volume consumed in at least 10 months.

In finished steel products, production recorded the sixth consecutive annual decline. In August it decreased 0.6 percent, year-over-year, to 1.58 million mt. That volume is the second lowest so far this year.

In contrast, the consumption of finished steel products registered another explosive increase, now 21.1 percent compared to the same month last year, totaling 2.53 million mt. It is the ninth consecutive annual increase.

In the accumulated period, January-August, liquid steel production was 10.81 million mt, 12.6 percent less compared to the same period last year. In contrast, liquid steel consumption in the same period increased 13.6 percent to 21.67 million mt.

For its part, the manufacturing of finished steel products accumulated as of August was 12.88 million mt, 2.1 percent less compared to the same period last year. Meanwhile, accumulated consumption totaled 19.08 million mt, 13.5 percent more.

Data from The World Steel Association from 2022 places Mexico as the fourteenth largest producer of liquid steel in the world.


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