Steel production and consumption in Mexico declined year-on-year in October, continuing an almost two-year decline amid the ongoing glut of demand in the country.
- Production fell 9% to 14 million metric tons in October from a year earlier, according to the Canacero Steel Chamber. Rebar, hot-rolled steel (HRC) and hot-dip galvanized steel (HDG) accounted for the largest volume of production.
- In October, consumption decreased by 10% compared to the same period last year and amounted to 21 million tons. The most sought-after products were high-density steel, HRC, and cold-rolled roll (CRC).
- In October, exports decreased by 16% to 2 million tons compared to the same period last year, mainly due to a 27% decrease in steel exports to the United States. Mexico, for its part, has turned to Canada and Central America as steel importers this year, with Canada's share rising by 35% compared to October last year, and Guatemala's by 49% over the same period.
- Imports decreased by 13% to 9.1 million tons compared to October last year compared to the previous year.
- The Mexican steel market has faced a drop in demand since the beginning of 2024 due to economic uncertainty and pressure caused by 50% U.
S. import duties, which has essentially deprived Mexico of its closest steel trading partner.
- The recovery in demand for flat-rolled products is expected no earlier than at least until mid-2026, when the agreement between the United States, Mexico and Canada will be reviewed. However, the production of rolled products may increase in the first quarter, as the government has proposed to include expenses for road and rail transportation in the budget for 2026.
