Liquid steel production in Mexico decreased 16.7 percent, year-over-year, in May to 1.13 million metric tons (mt). It is the lowest production volume in at least the last 43 months. It is also the eighteenth consecutive annual contraction, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
The lower production of primary steel in Mexico is partly explained because since January 2023, the steel giant Altos Hornos de México (AHMSA), with 5.5 million mt of production capacity, has been paralyzed due to insolvency.
In May, daily steel production was 36.3 mt, well below the 54.3 mt daily in May 2022 or the 54.8 mt in May 2021.
Regarding primary steel consumption in Mexico, it decreased 11.6 percent in May, year-over-year, to 2.53 million mt. May's percentage contraction is the worst drop in the last 29 months (since January 2022).
The lower consumption was due to lower supply and the problems that Mexico experienced in the import of steel products due to the new rules established by the Ministry of Economy since April 15, as previously reported by SteelOrbis.