In November, sales of metal scrap by large gathering and processing depots in Mexico decreased by 14.0 percent, year-over-year, the 17th consecutive annual decline and the worst recessionary scenario for that commercial sector, according to SteelOrbis' analysis of data from the national statistics agency Inegi.
The current recessionary period for the sector began in July 2022 and until November 2023 there are 17 months with a contraction in sales. It is the worst recessionary period in at least the last 15 years.
The sale of metal scrap is of vital importance for the Mexican and global steel market. According to the steel company DeAcero, which calls itself the largest metal scrap processor in Mexico, 95 percent of the steel it produces is with that input.
Other steel companies that consume scrap in steel production are ArcelorMittal, Ternium, Grupo Acerero, Tyasa, Gerdau Corsa, Grupo Simec, TAMSA Tenaris, Altos Hornos de México (AHMSA), although the latter is paralyzed due to insolvency.
In the January-November period, the sale of wholesale scrap in the Mexican steel market decreased 24.2 percent, compared to the same period in 2022. It is the worst percentage contraction in 14 years, only surpassed by the 31.4 percent drop in the same period. period of 2009.
Inegi’s information corresponds to the trade with wholesale sales of waste materials, which includes the sale of metal scrap, glass, plastic, paper and cardboard, among other reusable waste. The reported drop corresponds to the total activities. Of that total, metal scrap concentrated 68.4 percent of the total sales of said industry.