Metal Scrap Imports to Mexico Down 30% in March

March Metal Scrap Import Decline

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. The information is based on an analysis by SteelOrbis, which uses data from the National Statistics Institute (Inegi).

The import volume was the second lowest in the past 15 months. 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. It was only surpassed by $46 million in March 2020.

Steel Production Decline in Mexico

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. The latest public information shows an annual decline of 11.1 percent on a monthly average through March.

Scrap Exports Surge

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.

First Quarter Imports and Exports

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.

Recycling in Mexico’s Steel Industry

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.