Despite economic factors in the US, a major importer of Mexican steel products, Mexico is expecting its steel production to increase 4.2 percent in 2008.
Mexico, the world's 15th largest steel producer, has devised a plan to increase steel production to 32 million metric tons by the year 2020. To start, the country is expected to see 18.3 million metric tons of steel produced in 2008, an increase of 4.2 percent when compared to 2007.
Despite the slowdown in the US economy, Regulo Salinas, president of the National Iron and Steel Industry Chamber, and chief executive of Ternium SA's Mexican unit, said US steel consumption has not been affected so far thanks to the solid demand from the construction industry. In addition, Mexico's domestic steel consumption is expected to rise 3.1 percent this year from the 24.8 million metric tons in 2007.
In 2007, the steel industry accounted for 2.2 percent of Mexico's gross domestic product and 13.4 percent of manufacturing output.