Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Mexico’s biggest steelmaker, Altos Hornos de México (Ahmsa), has announced that only one blast furnace will feed the production at its Plant 1 and 2 in Monclova City in the northern state of Coahuila, Mexico. 


The company announced plans to idle its Furnace 6 in Plant 1 and only use Furnace 5 in Plant 2 to produce steel due to low demand for steel.


The Mexican steelmaker produced 4.52mn mt of crude steel in 2018, but in 2019 production fell 40pc, a spokesperson at Ahmsa told Davis Index.


Additionally, the move is aimed at adjusting the steelmaker’s production in tandem with current demand, while reducing its expenses, the company said in a statement.


The steelmaker expects demand to rise as infrastructure projects increase on the back of the United States-Mexico-Canada Agreement and increased public spending on these projects. Ahmsa said it would reactivate Furnace 6 when demand resumes as these projects take off.

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