The production of iron pellets in Mexico decreased 13.0 percent in April, year over year, to 405,980 metric tons (mt), with this decrease accumulating 16 consecutive months of contraction, according to a SteelOrbis analysis of data from the national statistics agency Inegi.
With 16 months of consecutive contraction in production, it is the second worst period of recession in the industry in 38 years, only surpassed by a period of 17 consecutive months, which began in September 2000 and ended in January 2002.
In the last week of last May, a workers’ union blocked access to one of the iron ore mines (and a blast furnace) of the Mexico unit of the largest global private steel producer, ArcelorMittal. As of today, there have been 28 days of blockade (June 20), classified by two labor courts as illegal. With these events, there will be 18 months of decline in pellet production in Mexico and with this it will be the period with the worst recession in almost four decades.