The production of liquid steel in Mexico registered the eighth consecutive annual drop in July, decreasing 17.5 percent, year-on-year, to 1.26 million metric tons (mt), the lowest volume in at least nine months, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
With this negative production trend, it is the third time in at least nine months that consumption doubled the volume produced. For every 100 mt consumed, Mexico manufactured only 44 mt, the rest was compensated with imports.
The liquid steel production volume in July is the lowest since at least November last year. The maximum volume of that period was in November with 1.49 million mt, with Altos Hornos de México (AHMSA) still producing; however, due to a liquidity crisis, it stopped its production at the beginning of the year.
Despite the lower production, the apparent consumption of steel in Mexico continued to increase, rising 26.7 percent in July, year over year, to 2.90 million mt. It is the largest volume consumed in at least nine months.
In finished steel products, production recorded the fifth consecutive annual drop. In July it decreased 4.7 percent, year-over-year, to 1.54 million mt, the lowest volume so far this year.
In contrast, the consumption of finished steel products registered another substantial increase, now 26.2 percent compared to the same month last year, totaling 2.55 million mt, the eighth consecutive annual increase. In addition, that volume is the highest in at least the last nine months.
In the accumulated January-July period, the production of liquid steel was 9.50 million mt, 3.5 percent less than the same period last year. In contrast, the consumption of liquid steel in the same period increased 11.7 percent to 18.79 million mt.
In the same period, manufacture of finished steel products accumulated to July was 11.30 million mt, 3.5 percent less compared to same period of last year. Meanwhile, accumulated consumption totaled 16.56 million mt, 11.5 percent more.
Data from the World Steel Association for 2022 places Mexico in the fourteenth largest producer of liquid steel in the world.