Exports of iron ore by criminal groups resulted in losses for US$1 billion for the domestic steel industry in 2013, according to Alonso Ancira, president of the National Chamber of Iron and Steel Industry (Canacero).
Ancira recognizes that organized crime has taken over mines mainly in Michoacán and Oaxaca states. "Insecurity had exceeded the limits in Michoacán,” he said. Last year 10 million tons of iron ore from illegal mines were exported to China.
In addition to iron ore, Mexico has faced recently the theft of steel products in-transit (mainly by trucking), amounting to US$500 million in 2013.
Steel companies currently have a 6 percent cost overrun based on low expectations of security, mainly with rebar, wire rod, and flats.
From 2004 to date, the theft of steel products fell 77 percent, but the theft of steel is still present in State of Mexico, Nuevo León, and Tamaulipas states, according to figures from Canacero.