Mexico’s HRC Increases Consumption And Production In March
Steel NewsDate: 22-05-2023 by: Ngan Le
According to the new updated data from the Mexican Iron and Steel Association, HRC consumption reached 445,000 tons in March and increased 19.6% over the same period last year. The recent rise in consumption is not a new sign, it has been recognized since 2022. HRC (hot rolled coil) is considered to be the most consumed steel product in the Mexico steel market with the number touching 4.66 million tons.
Regarding the import and export report in March, Mexico's HRC export volume showed signs of decline when it decreased by 60% and only reached 18,000 tons. In contrast, the volume of imported HRC steel recorded a significant growth when it reached 117,000 tons and there is a substantial difference between import and export volume.
Similarly, HRC production also recorded a rapid escalation with a figure of 346,000 tons and it rose 15.9% compared to February as well as it increased 12.3% over the same period last year. The reason for this growth comes from the establishment of hot-rolled steel mills that have contributed certainly to the climbing of Mexico’s HRC output. The Mexican representative expressed the desire to develop its autonomy in steel production, thereby helping them strengthen the domestic market as well as reduce dependence on importing hot-rolled coil from foreign.
Although Mexico is currently pursuing the strategy of self-reliance in hot-rolled steel production to replace imports, there are still some steel products that force Mexico to depend on imports. According to forecasts from many experts, the demand for main steel products including HRC, CRC and galvanized steel sheet will increase in the long term because the Mexican government has planned to invest in the auto industry.
It can be seen that the demand for steel in Mexico is still very strong and is considered a potential market for many exporting countries. Mexico is an impressive galvanized steel export market for Vietnam steel businesses because Vietnam steel products are received a preferential tax rate of 0% based on the commitment of the Comprehensive and Progressive Agreement for Partnership Agreement. Trans-Pacific Partnership (CPTPP).