MiningInsights, San Diego, 6th October 2023
The Mexican steel sector has shown a significant upturn in investment projections. Both national and international companies have ramped up their investment forecasts by 33.5%, marking an increase from $4.2 billion to a striking $5.6 billion for 2023-2025, as revealed by the Mexican Chamber of Iron and Steel Industry (Canacero).
Canacero's recent announcements confirm the industry's commitment to investing over $5,605 million in the coming years. Major stakeholders in these investment endeavors include Minera Autlán, Grupo DeAcero, Frisa, Ternium, Tubacero, Tyasa, and Grupo Acerero.
The last quarter's data shows the steel sector in Mexico channeling over $3.58 billion into investments. Additionally, an outstanding amount of $4.2 billion has been set aside to amplify national production and emphasize import substitution.
Key areas of investment focus will be the automotive, construction, energy, and aerospace domains. Specifically, the spotlight will be on the production of cold rolled sheet, galvanized sheet, and specialized steels, including carbon steel pipes catered for oil and gas (API Pipe).
A look back at the trade metrics indicates a deficit in Mexico's steel balance.
However, Canacero posits a promising shift towards self-sustainability. This shift not only signifies a positive trade balance but also aligns with the USMCA stipulations and bolsters value chains in North America.
Despite past challenges, the 2022 World Steel Association report ranks Mexico 14th among the world's leading steel producers, hinting at a bright future for the industry.
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