After 10 consecutive months of annual increases, the value of imports of steel products to Mexico in November decreased 7.1 percent, year-over-year, to $2.38 billion. This amount is the third consecutive amount below $3.0 billion per month, according to SteelOrbis' analysis of data from the national statistics office Inegi.
The increase in imports is partly explained because the Mexican steel market has paralyzed one of the largest steel companies. Due to insolvency, Altos Hornos de México (AHMSA), with an annual capacity of 5.5 million metric tons of steel, has not produced steel since the beginning of 2023 and part of that production is supplied with imports.
With AHMSA paralyzed and insolvent, exports of steel products from Mexico registered the fifteenth consecutive annual decline, decreasing 17.0 percent, year-over-year, to $946 million.
With the reduction in imports and exports, the trade flow of the steel industry in Mexico totaled $3.33 billion, 10.2 percent less compared to November of last year.
The Mexican steel market is in a deficit and in the last 30 years the trade balance has been in a deficit for the country. In December, the deficit was $1.44 trillion, 0.9 percent higher than the same month in 2022.
In the accumulated period of January-November, imports of steel products to Mexico registered a historical record for a similar period with $31.39 billion, 4.3 percent more compared to the same period in 2022.
The value of accumulated exports totaled $11.50 billion, 20.1 percent less than the first 11 months of 2022.
The trade balance deficit of the steel market in Mexico was $19.89 billion, 26.6 percent higher than the January-November 2022 period. The deficit is also a new historical record for a similar period.