The GDP of the steel industry in Mexico decreased 17.1 percent in the first quarter of the year, in real terms compared to the same period last year. It is the fifth consecutive quarterly contraction and is the largest contraction in the last 14 quarters, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The Inegi reported that the Mexican economy registered an annual increase of 1.6 percent in GDP. It is the twelfth consecutive annual increase.
The GDP of the steel industry is the reference to the Basic Iron and Steel Industry that integrates the steel complexes and the manufacture of primary slabs.
It refers to the primary smelting of raw iron and steel, ferroalloys, finished products such as tubes, hot rolled coils (HRC), cold rolled coils (CRC), posts, profiles, rebar. In addition to the manufacture of ingots, slabs, billets, ferroalloys, among others.
In monetary terms, the GDP of the steel industry in Mexico totaled $3.23 billion during the quarter. It is the lowest amount in the last 12 quarters (since the second quarter of 2021). The GDP of the Mexican economy totaled $1.89 trillion during the quarter.
In the last three decades, the GDP of the steel industry in Mexico has recorded six major recessionary periods with more than four consecutive quarters of contraction. One of four quarters concluded in September 2009, two periods of five quarters concluded in March 2016 and the current one (as of March 2024).
There are two periods of six consecutive quarters in recession, one ending in March 2002 and another ending in March 2012. The worst recession in the steel industry in Mexico was nine consecutive quarters in contraction and began four quarters before the SARS pandemic. CoV-2. It began in the fourth quarter of 2018 and concluded in the fourth quarter of 2020.