The value of finished steel product imports to Mexico decreased 25.6 percent in June, year-over-year, to $2.45 billion. It is the worst decline in the last 46 months (since September 2020). In the last 12 months, imports decreased seven times, according to SteelOrbis' analysis of data from the national statistics office Inegi.
In the last two months (May and June), the value of imports entered negative territory due to the problems of some steel importers to Mexico in obtaining permits under the new rules of the Mexican government since April 15 due to failures in the operation of the Ministry of Economy, as reported by SteelOrbis.
Regarding the value of exports of finished steel products, they remain on a negative trend. In June they decreased 17.4 percent, year-over-year, to $897 million.
In addition to the bureaucracy of the Ministry of Economy in steel import permits, international trade in the Mexican steel market has also been affected since the beginning of 2023 because the giant steel company Altos Hornos de México (AHMSA) paralyzed steel production due to its insolvency.
Mexico's trade flow of finished steel products with the world reached $3.35 billion, 23.4 percent less, year-over-year. In addition, it was well below the $4.55 trillion historical record in June 2022.
In the accumulated value of the first half of the year, the value of exports decreased 8.0 percent, totaling $6.0 billion, imports totaled $15.1 billion, 12.8 percent or $2.2 billion less compared to the January-June period of last year.
In June, the trade balance of the Mexican steel industry was in deficit by $1.55 billion, 29.3 percent less than the same month last year. In accumulated terms, the deficit was $9.1 billion, 15.7 percent less compared to the January-June period of last year.