The value of scrap metal imported to Mexico remained in negative territory in June, falling 33.4 percent year-over-year to $79 million. This is the fifth consecutive annual percentage decrease, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
Considering only the months of March, 2024 is the first time in the last four years that imports were below $100 million.
The consumption of national or imported scrap metal is linked to steel production. In Mexico, liquid steel production has posted 19 consecutive annual decreases until June (the most recent public information) with an annual decrease of 12.2 percent on a monthly average.
Scrap exports from the Mexican market increased in June by 7.2 percent, year-over-year, to $32 million.
In the first half of the year, imports decreased by 22.3 percent to $518 million, the lowest figure in the last four years. Exports totaled $261 million, 20.8 percent more than the same period last year.
According to the National Chamber of the Iron and Steel Industry (Canacero), 54 percent of the primary steel produced in Mexico is from metal scrap. In 2023, 16.2 million metric tons were manufactured.