Mexico Steel Industry Research Report 2023-2032
Mexico plays a significant role in the global steel industry, standing as the second-largest steel producer in Latin America and holding a position among the top 15 steel-producing nations worldwide.
As of 2021, the iron and steel sector contributed approximately 97 billion Mexican pesos to Mexico’s real gross domestic product (GDP).
In 2022, the Mexican steel industry continued to show an improvement with an growth of 5.9% and has an annual steel production about 19.6 million tonnes mainly using the electric arc furnace (EAF) production process. According to CRI, among the key players shaping this thriving industry are prominent companies such as Altos Hornos de Mйxico (AHMSA), Ternium Mйxico, DEACERO, Grupo Simec, and ArcelorMittal Las Truchas. Altos Hornos de Mйxico (AHMSA) stands out as the largest steel producer in Mexico, boasting an extensive industrial chain that spans from iron ore mining and coal mining to the production of diverse steel products. This industry leader has a significant impact on Mexico's steel landscape, with a robust steel mill chain. Operating on a sprawling 1,200-hectare facility, AHMSA possesses two main production plants with a combined capacity of 5.5 million tons per year.
Examining the data presented in Figures 5 and 6 reveals a notable disparity in Mexico's steel trade dynamics, particularly when contrasting the export and import of finished steel. Notably, Mexico faces a disadvantage in the export of finished steel. According to CRI, the Steel sector import penetration Index, computed based on data provided by Mexico's national steel association, Canacero, has consistently hovered around 40% since the fourth quarter of 2018.
Projections for the upcoming years indicate a positive trajectory for the Mexican steel industry. According to CRI, apparent steel consumption (ASC) is anticipated to witness a year-on-year increase of 2-3%, reaching 25 million tonnes in 2022. The ambitious goal is for finished steel exports to surge to nearly 5.1 million tonnes by the close of 2023, reflecting an impressive 24% year-on-year growth. Despite this optimistic outlook, imports are expected to maintain stability at the 11.7 million tons level seen in 2021.
While these developments are poised to contribute to a reduction in the short-term trade deficit, currently standing at 6.6 million tons, and subsequently lowering the Steel sector import penetration Index, it's crucial to note that Mexico's steel industry as a whole still contends with a substantial trade deficit, Mexico's steel industry has not achieved self-sufficiency as of yet.
Also, Mexico may not be widely regarded as abundantly endowed with steel raw materials, the country does possess certain natural resources that play a role in its steel production. In 2020, the production of iron ore in Mexico amounted to 11.4 million tonnes, complemented by an import volume of 1.5 million tonnes. Despite not being entirely self-sufficient in its raw material supply, Mexico maintains a notable steel industry, relying on both domestic production and imported resources to meet its manufacturing needs.
What’s more, Mexico's steel industry's commitment to energy efficiency and environmental sustainability has yielded tangible results, positioning the country as a leader in responsible and eco-friendly steel production. This commitment is not just rhetoric but is evident in the industry's active engagement in projects that align with the global trend of seeking eco-friendly solutions for both processes and products. The industry's dedication extends beyond mere awareness to the implementation of various initiatives throughout Mexico, contributing significantly to a more sustainable and environmentally conscious steel sector.
Furthermore, the focus on recycling within the Mexican steel sector adds another layer to its commitment to sustainability. The increasing utilization of scrap steel among local producers, coupled with some sourcing products from the USA and Europe, showcases a practical implementation of eco-friendly practices. Leveraging the benefits of free trade agreements, this not only promotes sustainable practices but also underscores the industry's commitment to circular economy principles.
The cause-and-effect relationship becomes evident when considering the exceptional energy efficiency achievements of Mexico's steel industry. With a consumption of only 13.3 GJ of energy per tonne of steel produced—38% less than the global average—the industry not only sets itself apart but positions the country as a frontrunner in the responsible and sustainable use of energy. This outstanding production efficiency is complemented by the sector's excellence in carbon emissions reduction, emitting only 1.18 tons of carbon dioxide per ton of steel—a 38% decrease compared to the worldwide average. These achievements not only align with international environmental protection standards but also solidify Mexico's role as a pioneer in sustainability within the global steel industry.
According to CRI's forecasts, the Mexican steel industry has a lot of room to grow in the coming years.
Topics covered:
As of 2021, the iron and steel sector contributed approximately 97 billion Mexican pesos to Mexico’s real gross domestic product (GDP).
In 2022, the Mexican steel industry continued to show an improvement with an growth of 5.9% and has an annual steel production about 19.6 million tonnes mainly using the electric arc furnace (EAF) production process. According to CRI, among the key players shaping this thriving industry are prominent companies such as Altos Hornos de Mйxico (AHMSA), Ternium Mйxico, DEACERO, Grupo Simec, and ArcelorMittal Las Truchas. Altos Hornos de Mйxico (AHMSA) stands out as the largest steel producer in Mexico, boasting an extensive industrial chain that spans from iron ore mining and coal mining to the production of diverse steel products. This industry leader has a significant impact on Mexico's steel landscape, with a robust steel mill chain. Operating on a sprawling 1,200-hectare facility, AHMSA possesses two main production plants with a combined capacity of 5.5 million tons per year.
Examining the data presented in Figures 5 and 6 reveals a notable disparity in Mexico's steel trade dynamics, particularly when contrasting the export and import of finished steel. Notably, Mexico faces a disadvantage in the export of finished steel. According to CRI, the Steel sector import penetration Index, computed based on data provided by Mexico's national steel association, Canacero, has consistently hovered around 40% since the fourth quarter of 2018.
Projections for the upcoming years indicate a positive trajectory for the Mexican steel industry. According to CRI, apparent steel consumption (ASC) is anticipated to witness a year-on-year increase of 2-3%, reaching 25 million tonnes in 2022. The ambitious goal is for finished steel exports to surge to nearly 5.1 million tonnes by the close of 2023, reflecting an impressive 24% year-on-year growth. Despite this optimistic outlook, imports are expected to maintain stability at the 11.7 million tons level seen in 2021.
While these developments are poised to contribute to a reduction in the short-term trade deficit, currently standing at 6.6 million tons, and subsequently lowering the Steel sector import penetration Index, it's crucial to note that Mexico's steel industry as a whole still contends with a substantial trade deficit, Mexico's steel industry has not achieved self-sufficiency as of yet.
Also, Mexico may not be widely regarded as abundantly endowed with steel raw materials, the country does possess certain natural resources that play a role in its steel production. In 2020, the production of iron ore in Mexico amounted to 11.4 million tonnes, complemented by an import volume of 1.5 million tonnes. Despite not being entirely self-sufficient in its raw material supply, Mexico maintains a notable steel industry, relying on both domestic production and imported resources to meet its manufacturing needs.
What’s more, Mexico's steel industry's commitment to energy efficiency and environmental sustainability has yielded tangible results, positioning the country as a leader in responsible and eco-friendly steel production. This commitment is not just rhetoric but is evident in the industry's active engagement in projects that align with the global trend of seeking eco-friendly solutions for both processes and products. The industry's dedication extends beyond mere awareness to the implementation of various initiatives throughout Mexico, contributing significantly to a more sustainable and environmentally conscious steel sector.
Furthermore, the focus on recycling within the Mexican steel sector adds another layer to its commitment to sustainability. The increasing utilization of scrap steel among local producers, coupled with some sourcing products from the USA and Europe, showcases a practical implementation of eco-friendly practices. Leveraging the benefits of free trade agreements, this not only promotes sustainable practices but also underscores the industry's commitment to circular economy principles.
The cause-and-effect relationship becomes evident when considering the exceptional energy efficiency achievements of Mexico's steel industry. With a consumption of only 13.3 GJ of energy per tonne of steel produced—38% less than the global average—the industry not only sets itself apart but positions the country as a frontrunner in the responsible and sustainable use of energy. This outstanding production efficiency is complemented by the sector's excellence in carbon emissions reduction, emitting only 1.18 tons of carbon dioxide per ton of steel—a 38% decrease compared to the worldwide average. These achievements not only align with international environmental protection standards but also solidify Mexico's role as a pioneer in sustainability within the global steel industry.
According to CRI's forecasts, the Mexican steel industry has a lot of room to grow in the coming years.
Topics covered:
- Mexico Steel Industry Overview
- The economic and policy environment of Mexico's steel industry
- What is the impact of COVID-19 on the Mexico’s steel industry?
- Mexico Steel Industry Market Size, 2023-2032
- Analysis of the main Mexico’s steel production enterprises
- Key drivers and market opportunities for Mexico's steel industry
- What are the key drivers, challenges and opportunities for Mexico's steel industry during the forecast period 2023-2032?
- Which companies are the key players in the Mexico steel industry market and what are their competitive advantages?
- What is the expected revenue of Mexico steel industry market during the forecast period 2023-2032?
- What are the strategies adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Mexico steel industry market is expected to dominate the market by 2032?
- What are the main negative factors facing the steel industry in Mexico?
1 DEVELOPMENT ENVIRONMENT OF MEXICO STEEL INDUSTRY
1.1 Economic Environment
1.1.1 Mexico’s Economy
1.1.2 Foreign Investment in Mexico Steel Industry
1.1.3 Minimum Wage Standard in Mexico
1.1.4 The impact of COVID-19 on Mexico's Steel Industry
1.2 Policy Environment
1.2.1 Policies Related to Steel Industry
1.2.2 Preferential Policies on Foreign Investment
1.2.3 Anti-dumping measures
1.3 Research Methods of the Report
1.3.1 Parameters and Assumptions
1.3.2 Data Sources
1.3.3 About CRI
2 MARKET STATUS OF MEXICO STEEL INDUSTRY, 2018-2022
2.1 Supply
2.1.1 Production Capacity
2.1.2 Production Volume
2.2 Demand on Mexico Steel Market
2.2.1 Total Demand
2.2.2 Demand Structure
2.2.3 Steel Price
2.3 Competition Structure of Mexico Steel Market
2.3.1 Upstream Suppliers
2.3.2 Downstream Customers
2.3.3 Competition in Steel Industry
2.3.4 Potential Entrants
2.3.5 Substitutes
3 MAJOR STEEL PRODUCTS IN MEXICO
3.1 Flat steel products industry
3.1.1 Supply and Production Volume
3.1.2 Demand
3.1.3 Imports and Exports
3.2 Long steel products
3.2.1 Supply and Production Volume
3.2.2 Demand
3.2.3 Imports and Exports
3.3 Steel pipes
4 ANALYSIS ON IMPORT AND EXPORT OF STEEL IN MEXICO, 2018-2022
4.1 Import
4.1.1 Import Overview
4.1.2 Major Import Sources
4.2 Export
4.2.1 Export Overview
4.2.2 Export Destinations
5 MAJOR STEEL MANUFACTURERS IN MEXICO, 2018-2023
5.1 Altos Hornos de Mйxico (AHMSA)
5.2 Ternium Mйxico
5.3 DEACERO
5.4 Grupo Simec
5.5 ArcelorMittal Las Truchas
5.6 Industrias CH, S. A. B. de C. V.
6 PROSPECT OF MEXICO STEEL MARKET, 2023-2032
6.1 Factors Influencing Development
6.1.1 Market Opportunities and Driving Forces
6.1.2 Threats and Challenges
6.2 Forecast on Supply and Demand
6.2.1 Forecast on Production Volume
6.2.2 Forecast on Demand
6.2.3 Forecast on Import and Export
6.3 Analysis on Investment Opportunities in Mexico Steel Industry
Disclaimer
Service Guarantees
1.1 Economic Environment
1.1.1 Mexico’s Economy
1.1.2 Foreign Investment in Mexico Steel Industry
1.1.3 Minimum Wage Standard in Mexico
1.1.4 The impact of COVID-19 on Mexico's Steel Industry
1.2 Policy Environment
1.2.1 Policies Related to Steel Industry
1.2.2 Preferential Policies on Foreign Investment
1.2.3 Anti-dumping measures
1.3 Research Methods of the Report
1.3.1 Parameters and Assumptions
1.3.2 Data Sources
1.3.3 About CRI
2 MARKET STATUS OF MEXICO STEEL INDUSTRY, 2018-2022
2.1 Supply
2.1.1 Production Capacity
2.1.2 Production Volume
2.2 Demand on Mexico Steel Market
2.2.1 Total Demand
2.2.2 Demand Structure
2.2.3 Steel Price
2.3 Competition Structure of Mexico Steel Market
2.3.1 Upstream Suppliers
2.3.2 Downstream Customers
2.3.3 Competition in Steel Industry
2.3.4 Potential Entrants
2.3.5 Substitutes
3 MAJOR STEEL PRODUCTS IN MEXICO
3.1 Flat steel products industry
3.1.1 Supply and Production Volume
3.1.2 Demand
3.1.3 Imports and Exports
3.2 Long steel products
3.2.1 Supply and Production Volume
3.2.2 Demand
3.2.3 Imports and Exports
3.3 Steel pipes
4 ANALYSIS ON IMPORT AND EXPORT OF STEEL IN MEXICO, 2018-2022
4.1 Import
4.1.1 Import Overview
4.1.2 Major Import Sources
4.2 Export
4.2.1 Export Overview
4.2.2 Export Destinations
5 MAJOR STEEL MANUFACTURERS IN MEXICO, 2018-2023
5.1 Altos Hornos de Mйxico (AHMSA)
5.2 Ternium Mйxico
5.3 DEACERO
5.4 Grupo Simec
5.5 ArcelorMittal Las Truchas
5.6 Industrias CH, S. A. B. de C. V.
6 PROSPECT OF MEXICO STEEL MARKET, 2023-2032
6.1 Factors Influencing Development
6.1.1 Market Opportunities and Driving Forces
6.1.2 Threats and Challenges
6.2 Forecast on Supply and Demand
6.2.1 Forecast on Production Volume
6.2.2 Forecast on Demand
6.2.3 Forecast on Import and Export
6.3 Analysis on Investment Opportunities in Mexico Steel Industry
Disclaimer
Service Guarantees
LIST OF CHARTS
Chart Location of Mexico in Southeast Asia
Chart Mexico GDP per capita 2011-2022
Chart Minimum Daily Wage in Mexico 2011-2023
Chart Mexico's steel import volume as a percentage of steel consumption
Chart Output Volume of Crude Steel in Mexico, 2018-2022
Chart Output Volume of Finished Steel in Mexico, 2018-2022
Chart Demand Volume of Finished Steel in Mexico, 2018-2022
Chart Demand Structure of Steel in Mexico in 2022
Chart Price Index of Mexico Import Steel
Chart Output Volume of Flat Steel in Mexico, 2018-2022
Chart Demand Volume of Flat Steel in Mexico, 2018-2022
Chart Import Volume of Flat Steel in Mexico, 2018-2022
Chart Export Volume of Flat Steel in Mexico, 2018-2022
Chart Output Volume of Long Steel in Mexico, 2018-2022
Chart Demand Volume of Long Steel in Mexico, 2018-2022
Chart Import Volume of Long Steel in Mexico, 2018-2022
Chart Export Volume of Long Steel in Mexico, 2018-2022
Chart Import Volume of Finished Steel in Mexico, 2018-2022
Chart Export Volume of Finished Steel in Mexico, 2018-2022
Chart Profile of Altos Hornos de Mйxico (AHMSA)
Chart Profile of Ternium Mйxico
Chart Profile of DEACERO
Chart Profile of Grupo Simec
Chart Profile of ArcelorMittal Las Truchas
Chart Forecast on Output Volume of Mexico Steel 2023-2032
Chart Forecast on Consumption of Mexico Steel 2023-2032
Chart Forecast on Import Volume of Mexico Steel 2023-2032
Chart Forecast on Export Volume of Mexico Steel 2023-2032
Chart Location of Mexico in Southeast Asia
Chart Mexico GDP per capita 2011-2022
Chart Minimum Daily Wage in Mexico 2011-2023
Chart Mexico's steel import volume as a percentage of steel consumption
Chart Output Volume of Crude Steel in Mexico, 2018-2022
Chart Output Volume of Finished Steel in Mexico, 2018-2022
Chart Demand Volume of Finished Steel in Mexico, 2018-2022
Chart Demand Structure of Steel in Mexico in 2022
Chart Price Index of Mexico Import Steel
Chart Output Volume of Flat Steel in Mexico, 2018-2022
Chart Demand Volume of Flat Steel in Mexico, 2018-2022
Chart Import Volume of Flat Steel in Mexico, 2018-2022
Chart Export Volume of Flat Steel in Mexico, 2018-2022
Chart Output Volume of Long Steel in Mexico, 2018-2022
Chart Demand Volume of Long Steel in Mexico, 2018-2022
Chart Import Volume of Long Steel in Mexico, 2018-2022
Chart Export Volume of Long Steel in Mexico, 2018-2022
Chart Import Volume of Finished Steel in Mexico, 2018-2022
Chart Export Volume of Finished Steel in Mexico, 2018-2022
Chart Profile of Altos Hornos de Mйxico (AHMSA)
Chart Profile of Ternium Mйxico
Chart Profile of DEACERO
Chart Profile of Grupo Simec
Chart Profile of ArcelorMittal Las Truchas
Chart Forecast on Output Volume of Mexico Steel 2023-2032
Chart Forecast on Consumption of Mexico Steel 2023-2032
Chart Forecast on Import Volume of Mexico Steel 2023-2032
Chart Forecast on Export Volume of Mexico Steel 2023-2032
