The value of imports from the steel industry in Mexico registered a decrease of 18.3 percent, year-over-year, to $2.47 billion in March, it is the fifth consecutive annual decrease and due to the magnitude of the decrease, it is the most pronounced in the last 43 months, according to SteelOrbis analysis of data from the national statistics office Inegi.
The contraction in the value of imports of steel products to the Mexican market in March is only surpassed by the annual drop of 29.1 percent in August 2020.
Exports of finished steel products decreased 10.9 percent, to $1.1 billion. It was the nineteenth consecutive annual decline (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) paralyzed steel production due to its insolvency.
In March, Mexico's trade flow of finished steel products with the world reached $3.56 billion, down 16.2 percent. In addition, it is well below the $4.55 billion historical record in June 2022.
In the first quarter, the value of exports decreased 6.7 percent, totaling $3.0 billion, imports totaled $7.3 billion, down 10.0 percent or $815 million compared to the January-March period of last year.
The Mexican steel market is in deficit and in the last 30 years the trade balance has been in deficit for the country. In March, the deficit was $1.37 billion and in the first quarter it was $4.3 billion, figures that meant annual decreases of 23.5 and 12.2 percent, in the same order, compared to their respective periods of 2023.