Mexico’s steel industry is welcoming the nation’s energy reform, as it could cut gas and electricity costs for the steel making segment, an ArcelorMittal executive told local media.
Mexico’s steel industry has been facing difficult times as Chinese imports advance in the country, ArcelorMittal’s general manager, Victor Cairo, said.
“This unfair competition with Chinese steel is affecting us strongly, so we actually see the future of the energy reform with good eyes,” he said, adding Mexico’s steel industry has higher production costs along with higher electricity costs.
“We’re not 100 percent prepared to compete because we have more expensive raw materials and this unfair competition is affecting the industry,” reinforced the executive.
Cairo said ArcelorMittal exports about 45 percent of what it produces. He added the nation has potential to grow its automotive industry.
Cairo argued the steel segment is one of the most important segments of the metals and mining industries, which can support the nation’s growth within the manufacturing sector.