After four consecutive months of steel product imports to Mexico exceeding $3.0 billion, in September they totaled just $2.76 billion, 5.5 percent year-over-year. It is the ninth consecutive annual increase, according to SteelOrbis analysis of data from the national statistics office Inegi.
In Mexican steel history, imports exceeded $3.0 billion seven times, five times in 2023 (March, May, June, July, August) and twice in 2022 (June and August).
The Mexican steel market 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 the year and part of that production is supplied with imports.
With AHMSA not producing, exports of steel products from Mexico registered the thirteenth consecutive annual decline. In September they decreased 15.7 percent, year-over-year, to $1.00 billion. In the last 28 months (since June 2021), exports have exceeded $1.0 billion 27 times.
The trade flow of the steel industry in Mexico in September totaled $3.77 billion, 1.1 percent less than the same month 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 September, the deficit was $1.76 billion, 23.2 percent higher than the same month last year.
In the accumulated period, January-September, imports of steel products to Mexico registered a historical record for a similar period with $26.33 billion, 5.7 percent more compared to the same period last year.
The value of accumulated exports totaled $9.62 billion, 20.1 percent less compared to the same period last year. Mexico's steel trade balance deficit was $16.71 billion, 29.7 percent higher than last year. The deficit is also a new historical record for a similar period.