The combined value of production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors in Mexico decreased 24.0 percent in March, year-over-year. It is the second consecutive annual drop, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The value of production of the two industries in March was MXN 40.65 billion ($2.37 billion). This amount represents 64.8 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 and primary slabs, registered an annual decrease of 45.5 percent, year-over-year, totaling the equivalent of $713 million. It is the twentieth consecutive annual drop. This industrial branch contributed 19.5 percent of the total value of production of the Basic Metals Industry.
That $713 million in March production value is the lowest amount in the last 45 months (since July 2020).
Internally, the value of the production of the steel complexes was the equivalent of $604 million, 31.2 percent (variation measured in pesos), year-over-year. That amount is the lowest in the last 38 months (since February 2021).
The production of primary slabs and ferroalloys ended the month with $110 million, 74.6 percent less, year-over-year. It is the second lowest amount in the statistical history of Inegi.
The steel complexes contributed 16.5 percent of the total value of production of the Basic Metals Industry and primary slabs and ferroalloys with 3.0 percent.
Separately, in March, the manufacturing of iron and steel products returned to the negative trend that it surpassed in the last three months. In March the value of production decreased 8.6 percent, year-over-year. In the last 18 months, 15 are in contraction in production. This industry contributed 45.3 percent of the total value of production of the Basic Metals 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.