For the sixth consecutive time this year, the volume of liquid steel consumption in Mexico grew by double digits with an increase of 17.8 percent in November, year-over-year, to 2.73 million metric tons (mt). In contrast, production maintained the negative trend of the last 12 months, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
Liquid steel production in Mexico registered the 12th consecutive annual decline, decreasing 9.2 percent in November, year-over-year, to 1.36 million mt.
This negative trend is partly explained because since the beginning of last year, one of the largest steel companies in the country, Altos Hornos de México (AHMSA), has been paralyzed by insolvency.
With the negative production trend, it is the seventh consecutive time in at least the last 37 months that consumption doubles the volume of steel produced in Mexico. For every 100 mt of steel consumed, Mexico manufactured half, the rest was compensated with imports.
On the finished steel products side, in November, consumption increased 17.5 percent, year-over-year, to 2.41 million mt, the 12th consecutive annual increase.
The production of finished steel products in Mexico returned to positive territory. In November it increased 1.8 percent, year-over-year.
In the accumulated period, January-November, the production of liquid steel was 14.9 million mt, 11.9 percent less compared to the same period in 2022. In contrast, the consumption of liquid steel in the same period increased 15.0 percent to 29.9 million mt.
For its part, the manufacturing of finished steel products accumulated until November was 17.8 million mt, 1.4 percent less compared to the same period in 2022. Meanwhile, accumulated consumption totaled 26.4 million mt, 14.9 percent more in the period.
Data from The World Steel Association from 2022 places Mexico as the 14th largest producer of liquid steel in the world.