Autlán, a Mexican iron ore mining company, has extended the temporary suspension of production of manganese ferroalloys at its Gómez Palacio plant, in Durango, Mexico due to low demand and production of steel and bad economic conditions in the country.
The company first suspended operations In December 2019, to provide maintenance to preserve the productivity. However, according to a company statement, the challenging conditions of the Mexican steel industry have affected the demand for manganese ferroalloys used for the steel sector, forcing the company to extend its temporary suspension of operations.
Autlán will consider restarting its operations at the facility if the steel market improves and demand for manganese ferroalloys increases over the next few months.
Until the market improves, the miner said that its Teziutlán and Tamós plants in Puebla and Veracruz would continue to fulfill its clients’ demand for the ferroalloys.
Autlán produces diverse manganese minerals and ferroalloys to produce steel.
Mexico’s steel production fell by 3.6pc in October this year to 1.5mn tonnes.