The steel industry in Mexico continues to be one of most important economic branches for Foreign Direct Investment (FDI), in the second quarter of the year receiving $489 million, 52.4 percent or $538 million less compared to the same period in 2022. Despite the collapse, of the 281 economic branches it ranked as the fourth most important, reveal data from the Ministry of Economy (SE) analyzed by SteelOrbis.
Despite the drop in the second quarter, in the January-June period, the Basic Iron and Steel Industry accumulated $2.41 billion in FDI, 136.9 percent or $650 million more than in the same period in 2022.
In the second quarter, the FDI in the steel companies occupies the fourth position below the auto parts industry ($501 million, 46.3 percent more), houses and apartments with hotel services ($665 million, 91.5 percent more) and by the heavy vehicle and truck manufacturing ($2.98 billion, up 95.6 percent).
In the first half of the year, the steel industry (Basic Iron and Steel Industry) in Mexico ranked as the third most important for the FDI, out of the 281 branches that dependency divides into the economy. It was only surpassed by the $5.02 (210.2 percent more) from the producers of commercial vehicles and heavy trucks and by commercial banks with $6.97 billion (211.2 percent more).
The FDI in 2022 in the steel industry in Mexico was the second most important with $2.11 billion, only surpassed by the $2.98 million of the producers of commercial vehicles and heavy trucks.
In a quarter of a century, the historical record was in 2007 with $3.55 billion. ArcelorMittal participated in that amount with the purchase of Sicartsa assets for more than $1.4 billion from Julio Villarreal, the owner of the steel processor Villacero, and one of those interested in buying the indebted steel company Altos Hornos de México (AHMSA).
The second largest inflow of FDI into the steel industry was in 2005 with $2.76 billion. That is where the sale of what was Hylsamex came in, today renamed Ternium México. At that time, the Italian-Argentine Techint paid $2.2 billion.
In the historical period, from January 2006 to June 2023, the steel industry in Mexico received FDI for $15.5 billion, with that amount ranking sixth in preference among foreign investors.
In that historical period, the FDI of the steel industry in Mexico was only surpassed by commercial banking ($56.7 billion), the beverage industry ($42.0 billion), manufacturing of commercial vehicles and heavy trucks ($39.2 billion). and by the auto parts industry ($28.3 billion).