The joint value of the production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors in Mexico recorded their eleventh consecutive annual drop in June. The value of joint production for the month decreased 22.1 percent, year-over-year, driven by a 29.8 percent drop in the “Basic iron and steel industry” and a 16.4 percent drop in the “Manufacture of iron and steel products,” according to a SteelOrbis analysis of data from the national statistics agency Inegi.
The production value of the two industries in June was MXN 43.94 billion ($2.56 billion). This represents 64.7 percent of the total value of the production of the Basic Metal Industry (the aluminum and non-ferrous metals industries are excluded).
The basic iron and steel industry, which includes the steel complexes, recorded a 29.8 percent drop in the value of its production to the equivalent of $973 million. It is the tenth consecutive annual decline. Production from the steel complexes was $742 million, 35.8 percent less than in June last year. It is the eleventh consecutive annual fall.
The manufacture of iron and steel products registered an annual decrease of 16.4 percent in its production value in June, totaling the equivalent of $1.58 billion. With the low in June, 12 consecutive annual falls have accumulated.
In the accumulated value of the first half of the year, the production value of the basic iron and steel industry was for the equivalent of $6.29 billion, a variation that in Mexican pesos represented a drop of 18.7 percent.
The accumulated value of the manufacture of iron and steel products as of June totaled the equivalent of $9.89 billion, in pesos it represented a drop of 13.5 percent compared to the period January-June 2021.