The value of metal scrap imported into Mexico in March fell 30.0 percent from a year earlier to $79 million. This is one of nine declines in the last 12 months, according to an analysis by SteelOrbis based on data from the National Statistics Institute (Inegi).
The import volume was the second lowest in the past 15 months, and it was the seventh time in the past 12 months that monthly imports fell below $100 million. Specifically, the value of imports in March 2024 was the lowest in the past four years, surpassed only by $46 million in March 2020.
The consumption of metal scrap, whether domestic or imported, is closely linked to steel production. In Mexico, steel production has been in consecutive annual decline for 16 months, with the latest public information showing an annual decline of 11.1 percent on a monthly average through March.
Meanwhile, scrap exports from the Mexican market increased 15.2 percent year-over-year to $48 million in March. This is the ninth consecutive annual increase.
From January through March, cumulative imports fell 10.7 percent to $275 million, the lowest level in five years. Cumulative exports for the same period totaled $137 million, an increase of 41.1 percent from the same period last year.
According to the National Chamber of the Iron and Steel Industry (Canacero), 54 percent of primary steel produced in Mexico is made from scrap metal. A total of 16.2 million metric tons of steel were produced in 2023.
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