The apparent consumption of galvanized sheet (HDG) in Mexico exceeded the March drop and in April increased 12.2 percent, year-on-year, totaling 376,000 metric tons (mt). The percentage increase and volume are the highest in at least the first four months of the year, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
HDG production also registered an annual increase of 13.0 percent in April, totaling 287,000 mt. The increase stands out because in January there was a zero increase, in February and March it decreased 2.9 and 8.6 percent respectively.
The national production of HDG contributed 76.3 percent of the total consumption, 0.51 percentage points more than the same month last year. Considering the production of April, the highest consumption of HDG is equivalent to 4.3 days of production.
In April, galvanized sheet was the second most consumed product in Mexico, only surpassed by hot-rolled sheet; in March it was in third place.
The higher production coincided with the higher production recorded by the steel company Nucor-JFE Steel México (a 50-50 joint venture between the US Nucor Corporation and the Japanese Steelmaker JFE Steel Corporation), which in April increased its production of galvanized sheet due to a reactivation in the automotive industry.
HDG international trade flow decreased 12.8 percent or 23,000 mt to 156,000 mt in April. Exports decreased by 16,000 mt or 32.0 percent, year-over-year, totaling 34,000 mt. Imports decreased 7,000 mt or 5.4 percent to 122,000 mt.
In the accumulated four months, consumption increased 2.9 percent to 1.42 million mt, production increased 0.8 percent to 1.09 million mt, trade flow decreased 13.1 percent to 626,000 mt.
Industry data shows that galvanized sheet producers in Mexico are Ternium and TA 2000 (TYASA), Posco Mexico, Villacero and Nucor-JFE Steel Mexico.