In November, the combined value of production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors in Mexico decreased 7.9 percent, year-over-year. It is the seventeenth consecutive annual decline; it is also the smallest reduction in the last 16 months, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The value of the production of the two industries in November was MXN 43.23 billion, a figure that at today's peso-to-dollar exchange rate is equivalent to $2.43 billion. This amount represents 66.4 percent of the total value of production of the Basic Metals Industry.
The value of production of the basic iron and steel industry, which includes steel complexes, registered an annual decrease of 16.4 percent, year-over-year, totaling the equivalent of $1.0 billion. It is the sixteenth consecutive annual decline. This industrial branch contributes 27.9 percent of the total value of production of the Basic Metals Industry.
Internally, the value of the production of the steel complexes was the equivalent of $676 million dollars, 21.5 percent (variation in pesos) less compared to November 2022. It is also the sixteenth consecutive annual decrease.
Separately, the manufacture of iron and steel products registered an annual decrease of 0.6 percent in its production value in November pesos, totaling the equivalent of $1.41 billion. With that November drop, 17 consecutive annual reductions have accumulated. This industry contributed 38.6 percent of the total value of production of the Basic Metals Industry.
In the accumulated 11 months and with today's exchange rate, the joint production value of the two industries was the equivalent of $28.27 billion, 19.4 percent less (variation measured in pesos). The accumulated value of the basic iron and steel industry was the equivalent of $11.70 billion, a variation that in Mexican pesos represented a decrease of 25.9 percent. In the steel complexes it was $7.93 billion, 27.6 percent less.
The accumulated value of the manufacture of iron and steel products totaled the equivalent of $16.56 billion, a figure that in pesos represented an annual decrease of 14.1 percent compared to the January-November 2022 period.
According to Inegi, steel complexes include primary smelting of iron, steel, finished steel products such as tubes, hot rolled sheet coils (HRC), cold rolled sheet coils (CRC), steel structures, commercial profiles , wire rod, rods, among others.