Liquid steel production in Mexico decreased 28.2 percent, year-over-year, in June to 920,000 metric tons (mt). It is the lowest production volume in at least the last 44 months (since November 2020). It is also the steepest percentage drop in at least the last 32 months, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
In annual comparison, in June 361,000 mt were no longer produced. This is due to the illegal blockade carried out by the Mining Union of Congressman Napoleón Gómez Urrutia of part of the ArcelorMittal México facilities from May 24 to July 19, including the blast furnace in Lázaro Cárdenas, Michoacán.
Recently, SteelOrbis published that steel production recorded the worst decline in Mexican steel history in June with a 60.7 percent drop, year-over-year. Measured compared to the previous month, the collapse was 50.5 percent, in both cases there are no precedents, according to Inegi data that has a history of more than three decades.
In the May-June period, liquid steel production was 2.05 million mt, 22.3 percent or 586,000 mt less compared to the same period last year.
With the drop in production in June, there have been 19 consecutive months of decline. This is mainly 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.
Without AHMSA, the main primary steel producers in Mexico are: Ternium, DeAcero, Frisa, Gerdau Corsa, Grupo Acerero, Simec, Suacero and TYASA. In May, June and July ArcelorMittal was blocked in its blast furnace, although its electric arc furnaces (EAF) did operate.
Regarding primary steel consumption, it was also affected in June. The decrease was 13.6 percent, year-over-year, 2.40 million mt. In the May-June period, consumption was 4.93 million mt, 12.6 percent or 712,000 mt less compared to the same period last year.
As of June, production was 7.12 million mt, 14.7 percent less than the first half of last year. Consumption was 15.71 million mt, 2.0 percent less in the comparison period.