In January, steel complexes in Mexico registered a 2.7 percent increase, year-over-year, in the value of their production. This increase breaks the negative trend of the last 17 months, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The steel complexes are part of the “Basic iron and steel industry,” which is still on a negative trend since August 2022, that is, since the last 18 months.
For its part, the production value of “Manufacture of iron and steel products” increased 19.2 percent, year-over-year, in January, the second consecutive annual increase.
The combined value of production of the “Basic iron and steel industry” and “Manufacture of iron and steel products” sectors increased 0.8 percent. It is the first positive increase after 18 consecutive months of contraction.
The value of production of the two industries in January was MXN 48.10 billion ($2.82 billion). This amount represents 68.1 percent of the total value of production of the Basic Metals Industry.
With today's exchange rate, the value of the production of the "Manufacture of iron and steel products" was $1.88 billion and $936 million of the "Basic iron and steel industry," of the latter, the steel complexes contributed $830 million.
According to official data, the Basic Metals Industry is made up of five industries: 1) Basic iron and steel industry, which contributes 22.6 percent of the production value; 2) Manufacture of iron and steel products that contributes 45.4 percent of the total; 3) Basic aluminum industry that contributes 5.4 percent of the total; 4) Non-ferrous metal industries (copper and precious metals) that contribute 21.4 percent and 5) Molding by casting of metal parts with 4.6 percent of the total.
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.