The value of metal scrap imported into Mexico increased 43.9 percent, year-on-year, in November to $103 million and accumulated $1.32 billion in the first 11 months, 9.2 percent more annualized. A new historical record has been set for the January-November period, according to SteelOrbis analysis of data from the national statistics office Inegi.
November was the 14th month in the history of the Mexican steel company that scrap metal imports exceeded $100 million. The historical monthly record was in May of last year with $189 million.
Unlike the United States, in Mexico there is no timely information on foreign trade in volume traded. According to the Inegi, headed by Graciela Marquez Colin, the delay of this information is 12 months. For this reason, SteelOrbis only reports value data.
In Mexico, the commercial flow of scrap was $1.78 billion in the January-November period, 11.3 percent more than the same period in 2021. This figure is a historical record for a similar period.
Of the commercial flow, metal scrap exports from Mexico represented 25.7 percent of the total. In November, they were down 44.8 percent, year-over-year, to $23 million, the steepest contraction in 82 months. Since February 2016, there has not been a drop of this magnitude.
In the accumulated 11 months, the value of scrap exports from Mexico increased 17.9 percent, compared to the same period of 2021, to $457 million.
The drop in November, like that of October (23.4 percent, less year on year) could be explained by the anti-inflationary policy that the Mexican government enacted as of October 3, 2022. Among the measures, the export of scrap steel and aluminum was prohibited.
In a recent decree of the anti-inflationary plan, dated January 6, 2023, the Mexican government omitted to specify whether the ban was maintained or was discarded.
SteelOrbis requested by email the Mexican foreign trade regulator, the Ministry of Economy headed by Raquel Buenrostro Sanchez, for a statement on scrap, but for the moment it has not responded.