The combined value of production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors in Mexico decreased 20.8 percent, year-over-year, in October. It is the sixteenth consecutive annual decline and the sixth annual decline that exceeds 20 percent levels, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The value of production of the two industries in October was MXN 42.78 billion, a figure that at today's exchange rate is equivalent to $2.47 billion dollars. This amount represents 66.6 percent of the total value of production of the Basic Metals Industry.
The value of production of the basic iron and steel industry, which includes steel complexes, registered an annual decrease of 31.5 percent, year-over-year in October, totaling the equivalent of $990 million dollars. It is the fifteenth consecutive annual decline. Internally, the value of the production of the steel complexes was the equivalent of $630 million dollars, 36.1 percent (variation in pesos) less compared to October of last year. It is also the fifteenth consecutive annual decline.
Separately, the manufacturing of iron and steel products recorded an annual decrease of 11.6 percent in its production value in October, totaling the equivalent of $1.48 billion dollars. With that October drop, 16 consecutive annual reductions have accumulated.
In the accumulated 10 months and with today's exchange rate, the joint production value of the two industries was the equivalent of $26.60 billion dollars, 20.4 percent less (variation measured in pesos). The accumulated value of the basic iron and steel industry was the equivalent of $11.00 billion, a variation that in Mexican pesos represented a decrease of 26.7 percent. In the steel complexes it was $7.47 billion
The accumulated value of the manufacture of iron and steel products totaled the equivalent of $15.60 billion, a figure that in pesos represented an annual decrease of 15.2 percent compared to the January-October 2022 period.
According to Inegi, steel complexes include primary smelting of iron, steel, finished steel products such as tubes, hot rolled sheet coils (HRC), cold rolled sheet coils (CRC), steel structures, commercial profiles , wire rod, rebar, among others.