The value of imports of steel products to Mexico in December 2023 decreased 8.1 percent, year-over-year, to $2.28 billion, the second consecutive annual decline and the lowest value in the last 30 months, according to SteelOrbis analysis of data from the national statistics office Inegi.
The drop in imports occurs in a Mexican steel market that has paralyzed one of the largest steel companies. Due to insolvency, Altos Hornos de México (AHMSA), with an annual capacity of 5.5 million metric tons of steel, has not produced steel since the beginning of 2023.
With AHMSA not producing due to insolvency, exports of steel products from Mexico registered the 16th consecutive annual decline, decreasing 6.1 percent in December, year-over-year, to $1.1 billion.
With the reduction in the value of imports and exports, the trade flow of the steel industry in Mexico totaled $3.38 billion, 7.4 percent less compared to December of last year.
The Mexican steel market is in deficit and in the last 30 years the trade balance has been in deficit for the country. In December, the deficit was $1.18 billion, 9.8 percent less than the last month of 2022.
For the full year 2023, imports of steel products to Mexico registered a historical record for a similar period with $33.67 billion, 3.4 percent more than in 2022. The value of accumulated exports totaled $12.60 billion, 19.0 percent less than in 2022.
The trade balance deficit of the steel market in Mexico was $21.07 billion, 23.8 percent higher than in 2022. The deficit also registered a new historical record.