Steel production in Mexico fell 53.1 percent, year-over-year, in July. It is the second worst drop in Mexican corporate history. The Inegi indicator also places July as the second lowest in the statistical history of Inegi.
The Inegi indicator is an index number (base 2018=100). In July it was 39.6 points, a number that is the second lowest in history. The lowest was last June with 31.7 points.
The contraction in steel production is due to the blockade of an ArcelorMittal Mexico blast furnace in the accidental city of Lázaro Cárdenas, Michoacán from May 24 to July 19. Although for some reason not detailed, from its central offices in Luxembourg, the company reported that the restart of production of the blast furnace would take two months.
These two additional months are completed this week. SteelOrbis requested information from ArcelorMittal Mexico to know the date that production will restart at the blast furnace. The response is pending.
The contraction in steel production corresponds to the basic iron and steel industry that integrates the steel complexes and the manufacture of primary slabs in Mexico.
In Mexican history, steel production has registered 18 contractions of between 20 and 30 percent, six decreases of more than 30 percent and less than 40 percent. Three decreases greater than 40 percent, one decrease greater than 50 percent and one decrease greater than 60 percent.