The combined value of production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors in Mexico decreased 18.8 percent, year-over-year, in April. It is the third consecutive annual decline, although in the last 22 months, 21 of them are declines, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The value of production of the two industries in April was MXN 40.79 billion ($2.18 billion). This amount represents 64.4 percent of the total value of production of the Basic Metals Industry or 4.4 percent of the value of production of the entire manufacturing industry in Mexico.
The value of production of the basic iron and steel industry, which includes steel complexes and primary slabs, registered an annual decrease of 42.4 percent, year-over-year, totaling the equivalent of $678 million. It is the twenty-first consecutive annual drop. This industrial branch contributed 19.7 percent of the total value of production of the Basic Metals Industry or 1.4 percent of the entire manufacturing industry.
The production value of the basic iron and steel industry in April is the third lowest in the last 52 months (since January 2020).
Internally, the value of the production of the steel complexes was the equivalent of $584 million, 27.7 percent less (variation measured in pesos), year-over-year. The production of primary slabs and ferroalloys concluded the month with $93 million, 74.7 percent hundred less, year after year. It is the minimum value in the statistical history of Inegi.
The steel complexes contributed 16.9 percent of the total value of production of the Basic Metals Industry and primary slabs and ferroalloys with 2.9 percent. In total manufacturing they contributed 1.2 and 0.2 percent, respectively.
Separately, in April, the manufacturing of iron and steel products returned to the negative trend for the second consecutive month and left behind the positive trend of the December-February period. In April, the value of production decreased 0.2 percent, year-over-year, to $1.50 billion. In the last 22 months, 19 are in contraction in production. This industry contributed 44.7 percent of the total value of production of the Basic Metals Industry or 3.1 percent of the value of the entire manufacturing industry.
The Basic Iron and Steel Industry that integrates steel complexes and the manufacture of primary slabs, which are primary casting of raw iron and steel, ferroalloys, finished products such as tubes, coils of hot rolled sheet (HRC), coils of cold rolled sheet (CRC), posts, profiles, wire rod, cables, rods, angles, and the manufacture of ingots, slabs, billets and ferroalloys.