The value of finished steel product imports to Mexico decreased 21.3 percent in May, year-over-year, to $2.56 billion. It is the worst decline in the last 45 months (since September 2020). It is the seventh drop in the last eight months, according to SteelOrbis analysis of data from the national statistics office Inegi.
The value of imports entered negative territory due to the problems of some steel importers to Mexico, with several clients, who have registered problems since April 15 due to failures in the operation of the Ministry of Economy due to its new rules for steel products, as reported by SteelOrbis.
In fact, SteelOrbis is the only media that has reported on the problems of steel industrialists in Mexico.
He recently published that only one businessman has lost (as of the first half of July) about $800,000 due to the high costs of storage in Mexican seaports that have been paid because the steel is already in the country, but the authorization of the government for import. The businessman even said that it was cheaper to declare the cargo abandoned than to continue paying for storage.
Regarding the value of exports of finished steel products, they remain on a negative trend. In May they decreased 6.1 percent, year-over-year. This has accumulated 21 consecutive falls (since September 2022).
International trade in the Mexican steel market has been affected since the beginning of 2023 because the steel giant Altos Hornos de México (AHMSA) stopped steel production due to its insolvency.
Mexico's trade flow of finished steel products with the world reached $3.63 billion, 17.4 percent less, year-over-year. In addition, it was well below the $4.55 billion historical record in June 2022.
In the January-May period, the value of exports decreased 6.1 percent to total $5.1 billion, imports totaled $12.7 billion, 9.9 percent or $1.39 billion less compared to the January-May period of last year.
In May, the trade balance of the Mexican steel industry was in deficit by $1.49 billion, 29.5 percent less than the same month last year. In the first five months, the deficit was $7.6 billion, 12.3 percent less compared to the January-May period of last year.