The production of liquid steel in Mexico registered the seventh consecutive annual drop. In June it decreased 19.6 percent, year-over-year, to 1.27 million metric tons (mt), the lowest volume in at least eight months.
With this negative trend, it is the second time in at least eight months that consumption doubled the volume produced, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
The volume of liquid steel production in June is the lowest since at least November of last year, with the maximum volume for that period totaling 1.49 million mt. At that time, the steel company Altos Hornos de México (AHMSA) was still operating, which, due to its liquidity crisis, stopped annual production capacity of 5.5 million mt since the beginning of the year.
In May and June, the contraction was similar in the order of 20 percent. Despite this contraction, steel consumption remains on an uptrend, increasing 26.3 percent in June, year over year, to 2.83 million mt. It is the second time that consumption doubled production, 12.1 percent or 1.51 million mt in May and 22.2 percent or 1.56 million mt in June.
In finished steel products, production recorded the fourth consecutive drop. In June it decreased 6.5 percent, year over year, to 1.55 million mt. That volume is the second lowest since November of last year.
The consumption of finished steel products registered an explosive increase of 25.4 percent compared to the same month last year, totaling 2.84 million mt. It is the seventh consecutive annual increase.
In the accumulated January-June, the production of liquid steel was 8.24 million mt, 12.2 percent or 1.14 mt less compared to the same period last year. In contrast, steel consumption, in the same period, increased 10.3 percent or 1.49 million mt to 15.90 million mt.
Cumulative June manufacturing of finished steel products was 9.76 million mt, 2.0 percent or 196,000 mt less than in the first half of last year. Meanwhile, the accumulated consumption totaled 14.00 million mt, 10.2 percent or 1.3 million mt more.
Data from the World Steel Association, in 2022 Mexico was the fourteenth largest producer of liquid steel in the world.