Apparent consumption of hot rolled coils (HRC) in Mexico decreased 30.8 percent in June, year-over-year, to 292,000 metric tons (mt). It is the worst percentage contraction and the volume consumed is the lowest in at least the last 30 months, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero), reviewed by SteelOrbis.
HRC consumption in June of 292,000 mt contrasted with April data which was 510,000 mt, a new maximum, in at least the last 30 months. Between these two volumes there is a contraction of 42.7 percent or 218,000 mt.
In the last 18 months, HRC consumption in Mexico grew double digits 14 times and registered three drops. In December 2023, the highest growth rate of the period was recorded with 35.3 percent, year-over-year.
On the HRC production side in Mexico, in June it decreased 24.6 percent to 181,000 mt. It is the lowest volume in at least the last 30 months. Furthermore, it is the first time in the period that less than 200,000 mt are manufactured per month.
In the first half of the year, consumption increased 3.7 percent to 2.53 million mt. Production increased 2.2 percent to 1.80 million mt. Imports increased 5.6 percent to 812,000 mt and exports decreased 7.9 percent to 79,000 mt.
Industry data shows that HRC producers in Mexico are Altos Hornos de México (AHMSA, paralyzed by insolvency), Tyasa, Ternium and ArcelorMittal.