With climate change, metal scrap is a strategic raw material for the production of green steel not only in Mexico, but globally. In Mexico there are 11,376 establishments dedicated to the purchase and collection of the product, according to an analysis carried out by SteelOrbis on data from the national statistics agency Inegi.
According to some reports, Mexico annually consumes 12.5 million mt of ferrous scrap, of which just over a quarter is imported to satisfy the demand of at least 10 primary steel producers, namely ArcelorMittal, Ternium, DeAcero, Frisa, Gerdau Corsa, Grupo Acerero, Simec, Suacero and TYASA.
Demand could increase if the Brazilian Gerdau decides to build a new steel mill for special steels (SBQ), a plant that, if approved, will have an annual production capacity of 600,000 mt and will use metal scrap. In addition, the restart of production is expected at Altos Hornos de México (AHMSA), which in addition to its blast furnaces, also produces steel with an electric arc furnace (EAF).
Of the total establishments, 65.2 percent are concentrated in 10 states. Of these, the state of Mexico stands out, the second largest economy in the country in terms of its contribution to GDP, with 2,228 establishments, a figure that represents 19.6 percent of the total.