HRC consumption and production in Mexico hit 30-month low

Mexico's hot rolled coil (HRC) consumption decreased by 30,8% y/y to around 292.000 tons. This decline was in sharp contrast to the industry's performance in previous periods. The Mexican Chamber of the Iron and Steel Industry (Canacero) highlighted this sharp decline.

HRC production was also decreased by 24,6% y/y to around 181.000 tons in June. This was not only the lowest level in the last 30 months but also the first time in this period that monthly production fell below 200.000 tons.

These declines have also affected companies such as Altos Hornos de México (AHMSA), TYASA, Ternium Mexico and ArcelorMittal México, all major steel producers in the region. The data provided by Canacero is considered a critical indicator of the health of Mexico's steel industry.