The combined value of production of Mexico’s “basic iron and steel industry” and “manufacture of iron and steel products” sectors decreased 20.9 percent, year-over-year, in September. It is the fifteenth consecutive annual decline, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The value of production of the two industries in September was MXN 41.33 billion ($2.34 billion). This amount represents 64.5 percent of the total value of production of the Basic Metals Industry and 4.6 percent of the value of production of the manufacturing industry in Mexico.
The value of production of the basic iron and steel industry, which includes steel complexes, registered an annual decrease of 29.2 percent, year-over-year, in September, totaling $950 million. It is the 14th consecutive annual decline. Internally, the production of the steel complexes was $619 million, 34.1 percent (variation in pesos) less compared to September of last year. It is also the fourteenth consecutive annual decline.
The value of the production of the steel complexes, in pesos, in September is the lowest amount in the last 31 months, since March 2021.
The manufacturing of iron and steel products registered an annual decrease of 14.1 percent in its production value in September, totaling $1.39 billion. With that August drop, 15 consecutive annual reductions have accumulated.
With today's exchange rate, the joint production value of the two industries was $23.60 billion, 20.3 percent less (variation measured in pesos). The accumulated value of the basic iron and steel industry was $9.79 billion, a variation that in Mexican pesos represented a decrease of 26.2 percent.
The accumulated value of the manufacture of iron and steel products totaled $13.80 billion, in pesos representing an annual decrease of 15.6 percent compared to the January-September 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, rods, among others.