The value of production at steel complexes in Mexico plummeted 54.0 percent in June, year-over-year, to MXN 5.87 trillion ($290 million), 54.0 percent, year-over-year, less. In addition, the value of slab production totaled MXN 1.63 trillion ($81 million), 73.9 percent, year-over-year, less. These values are the lowest in the statistical history of the national statistics agency Inegi.
The production values for June are lower than those recorded with the Covid-19 pandemic that paralyzed the Mexican economy, as well as the global economy. With the pandemic, the lowest value of production at steel complexes was in June 2020 with the equivalent of $387 million. That amount was 33.3 percent higher than that reported in June of this year.
The lowest value of slab production was in May 2020 with the equivalent of $191 million. That value is 135 percent higher than that recorded in June of this year.
The drop in production value plummeted due to the blockade of ArcelorMittal Mexico's facilities by the Miners' Union of Congressman Napoleón Gómez Urrutia, which paralyzed part of the company's facilities from May 24 to July 19.
The steel industry in Mexico reports a strong lag. In the last 23 months (since August 2022) the value of production of steel complexes has decreased 22 times.
In the last 25 months (since May 2020), the value of slab production has registered 24 declines.
The decline in production will continue. As SteelOrbis reported, the production of the ArcelorMittal Mexico blast furnace, which stopped producing billets due to the blockade by the miners' union, will be reactivated in a couple of weeks (September).