Mexican steel production from January to June reached 6.5 million metric tons (mt), which represents a 32 percent drop when compared to the first half of last year, reported the National Bureau of the Steel and Iron Ore industry CANACERO.
National steel consumption in the Jan-Jun period also dropped to 7.8 million mt or 41 percent below the consumption level for the same period of time last year.
Furthermore, CANACERO explained that in addition to the decrease in consumption, higher electricity costs, which come as a result of higher oil and natural gas prices, have also negatively impacted the steel industry in the first half of 2009. In Mexico the steel sector is the primary consumer of energy related products.
"Along with these production and sales results, the 13.3 percent increase in the cost of electric energy for the industrial sector has had a major effect on production costs compared to last year,"said Octavio Rangel Frausto, CANACERO's General Director.