Mexico’s steel consumption will decrease by 13.4pc to 21.3mn mt in 2020, from 24.6mn mt in 2019, according to the National Steel Association (Canacero).
The association cited lower demand from the construction, manufacturing, and automotive industries during the year for the fall in consumption. However, José Román Vergara, Director of foreign trade and statistics at Canacero indicated that steel consumption would increase by 7.3pc in 2021 due to higher demand for steel to supply in new infrastructure projects.
Speaking during a webinar titled “Situation of Latin America and perspectives of the steel industry” Vergara said that the steel industry could produce 1.5mn mt of steel products in 2021 to feed the demand in new government infrastructure projects such as the Santa Lucia Airport, Dos Bocas oil refinery, and the Maya railway.
Mexico’s finished steel production fell by 20pc to 1.50mn mt in July this year, from 1.20mn mt produced in the same month last year, while steel consumption fell by 27pc to 1.5mn mt in July from 2.06mn mt in the prior-year period.
Steel exports fell by 2pc to 1.2mn mt in the first seven months of the year, compared with the same period in 2019. Of the total steel exports, 68pc was shipped to the US, about 8pc to Colombia, 3pc to Canada, and the rest were shipped to other Latin American countries, Vergara noted.
Steel imports also fell by 14pc to 5.1mn mt between January and July this year, compared with the prior-year period. Of the total imports, 35pc came from the US, 18pc from Japan and South Korea, respectively, and 4pc from China.