CRU: Mexican steel sector investing billions to replace imports

Steel shipments into Mexico last year rose 21.3% year-on-year to 12.5 million metric tons (mt), with the US accounting for 32.5% of the total, South Korea 15.5%, and Japan 14.9%.

The largest project underway is the slab mill Ternium is adding to its Pesqueria plant in Nuevo Leon state, northern Mexico, at a recently increased cost of $3.4 billion. That’s up from $3.2 billion previously.

The current $5.7-billion investment program follows on from $5.4 billion of capex projects in the past six years.

Canacero’s incoming president Victor Cairo commented: “I believe that the [steel] industry has a commitment to continue investing and growing, and that is why we believe that we’re going to continue working closely with the economy ministry to be able to strengthen trade practices with all countries and guarantee that we’re not a country of triangulation.”

That is reference to a claim that Mexico is being used as a route into the US market by steel producers in other countries. The Mexican steel industry and government deny that is happening.

This article was first published by CRU. Learn more about CRU’s services at www.crugroup.com/analysis.