The production of liquid steel in Mexico registered the sixth consecutive drop. In May it had the worst drop with 20.0 percent, year-over-year, to 1.35 million metric tons (mt).
With this drop, it is the first time, in at least seven months, that consumption doubles the volume produced, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
It is the second lowest volume produced in at least the last seven months. In addition to the low prices of steel, the operational paralysis since the beginning of the year of the steel company Altos Hornos de México (AHMSA) also has an influence. Its annual production capacity is 5.5 million mt.
Meanwhile, steel consumption increased 7.0 percent to 2.86 million mt. It is at least the seventh consecutive increase. In addition, it was the highest volume, at least since November of last year.
Because Canacero does not release its statistics to the media, at least in the last seven months, it is the first time that steel consumption doubles production. In May, consumption exceeded production by 112.1 percent or 1.51 million mt.
In finished steel products, production recorded the third consecutive drop. In May it decreased 11.6 percent, year-over-year, to 1.60 million mt. The consumption of finished steel products increased 6.3 percent compared to the same month last year. It is the sixth consecutive annual increase.
In the accumulated January-May, the production of liquid steel was 6.96 million mt, 10.7 percent or 833,000 mt less than the same period last year. The manufacture of finished steel products was 8.21 million mt, 1.1 percent less, and consumption was 11.53 million mt, 7.4 percent more than the accumulated figure as of May 2022.
Although some economists consider Canacero's statistics a leading indicator of the economy, the chamber only distributes the information to members. However, affiliated companies shared the information with SteelOrbis.
Data from The World Steel Association, in 2021 Mexico was the fifteenth largest producer of liquid steel in the world.