The value of metal scrap imported into Mexico decreased 36.0 percent, year-over-year, in May to $88.0 million. It is the fourth consecutive annual decline and in the first five months of the year, it is the fourth time that less than $100 million per month has been imported, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
Also, in the last 12 months, it is the ninth non-consecutive time that imports were below $100 million per month.
The consumption of domestic or imported metal scrap is linked to the production of steel. In Mexico, steel production accumulated 18 months with consecutive annual declines until May (the most recent public information) with an annual reduction of 11.3 percent on a monthly average.
Scrap exports from the Mexican market decreased 1.4 percent, year-over-year, in May to $41 million. With a decrease, the positive streak of the last 10 months was broken.
In the January-May period, imports decreased 20.3 percent to $451 million, a figure that is the lowest in the last four years. Exports accumulated $222 million, 23.7 percent more than the same period last year.
According to the National Chamber of the Iron and Steel Industry (Canacero), 54 percent of the primary steel produced in Mexico is with metal scrap. In 2023, 16.2 million metric tons were manufactured.