The value of imports of steel products to Mexico once again exceeded $3.0 billion per month in August, totaling $3.16 billion, which is up 4.2 percent, year-over-year. It is the seventh time in Mexican steel history that this amount has been exceeded, according to SteelOrbis' analysis of data from the national statistics office Inegi.
The Mexican steel market has been affected by the ongoing outage of one of the country’s 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 the year and part of that production is supplied with imports.
In this scenario, the export of steel products registered a twelfth consecutive annual decline. In August exports decreased 22.9 percent, year-over-year, to $1.09 billion.
The trade flow of the steel industry in Mexico in August totaled $4.25 billion, 4.4 percent less compared to the same month last year.
The Mexican steel market is in deficit and practically in the last 30 years the trade balance has been in deficit for the country. In August, the deficit was $2.08 billion, 27.7 percent higher than the same month last year.
In the accumulated period of January-August, imports of steel products to Mexico registered a historical record for a similar period with $23.57 billion, 5.7 percent more compared to the same period last year.
The value of accumulated exports totaled $8.61 billion, 20.5 percent less. The deficit in Mexico's steel trade balance was $14.96 billion, 30. percent higher. It is also a new historical record for a similar period.