The combined value of the production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors recorded their twelfth consecutive annual decline in July, according to SteelOrbis analysis of the agency's data from national statistics Inegi.
In July, the joint production value decreased 24.6 percent, year-over-year, due to a 36.6 percent drop in the “Basic iron and steel industry” and a 15.5 percent drop in the “Manufacture of steel products iron and steel".
The value of the production of the two industries in July was MXN 40.73 billion, a figure that at today's exchange rate is equivalent to $2.32 billion. This amount represents 64.1 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 a decrease of 36.6 percent, year-over-year, in July, totaling the equivalent of $834 million.
It is the eleventh consecutive annual decline; the production of the steel complexes was $683 million, 37.7 percent (variation in pesos) less compared to July of last year. It is the twelfth consecutive annual drop.
The value of the production of the steel complexes, in pesos, in July is the lowest amount in the last 29 months, since March 2021.
The manufacturing of iron and steel products recorded an annual decrease of 15.5 percent in its production value in July, totaling the equivalent of $1.48 billion. With the drop in June, 13 consecutive annual falls have accumulated, since July of last year.
With today's exchange rate, the value of accumulated production from January to July in the basic iron and steel industry was the equivalent of $6.98 billion, a variation that in Mexican pesos represented a decrease of 21.4 percent.
The accumulated value of the manufacture of iron and steel products as of July totaled the equivalent of $11.14 billion, in pesos representing a decrease of 13.7 percent compared to the January-July 2021 period.
The 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, rebar, among others.