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

Mexico’s crude steel output could fall by 10-15pc this year to 16mn mt, compared to 2019 due to the effects of the COVID-19 pandemic.


The drop would represent a decline of around 2-3mn mt compared to 2019, Daniel Riojas de la Garza, deputy sales director at Altos Hornos de México (Ahmsa) said during a webinar titled “Will Coronavirus Affect the Health of the Iron and Steel industry in Mexico?”


The automotive industry will be another sector that will suffer the economic effects of COVID-19, he said, adding that steel production for the car industry had increased over the past few months but would fall again to balance supply and demand for the material due to halted operations by automakers because of the pandemic.


Mexico’s steel production fell by 8pc in 2019 to 18.6mn mt tonnes, according to World Steel Association data.


Ahmsa, which has a capacity of 5.5mn mt per year is working at 60pc of its capacity due to several factors including the effects of COVID-19, Garza added.

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