The combined value of the production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors recorded their fourteenth consecutive annual decline in August. The overall production value decreased 20.2 percent, year-over-year, due to a 32.6 percent drop in the steel industry and an 11.0 percent drop in the steel products industry, according to SteelOrbis' analysis of data from the national statistics agency Inegi.
The value of the production of the two industries in July was MXN 42.08 billion ($2.26 billion). This amount represents 64.1 percent of the total value of production of the Basic Metals Industry and 4.6 percent of the value of production of the manufacturing industry in Mexico.
The value of production of the basic iron and steel industry, which includes steel complexes, registered an annual decrease of 32.6 percent, year-over-year, in August, totaling the equivalent of $807 million. It is the thirteenth consecutive annual decline. The production of the steel complexes was the equivalent of $604 million, 36.4 percent (variation in pesos) less compared to August of last year. It is also the thirteenth consecutive annual decline.
The value of the production of the steel complexes, in pesos, in August is the lowest amount in the last 30 months, since March 2021.
The manufacturing of iron and steel products registered an annual decrease of 11.0 percent in its production value in August, totaling the equivalent of $1.45 billion.
With today's exchange rate, the value of accumulated production from January to August in the basic iron and steel industry was the equivalent of $8.39 billion, a variation that in Mexican pesos represented a decrease of 25.8 percent.
The accumulated value of the manufacture of iron and steel products totaled the equivalent of $11.79 billion, in pesos representing a decrease of 15.7 percent compared to the January-August 2022 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.