Mexico's Steel Production Plummets Amidst Blast Furnace Shutdown
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Mexico's steel production experienced a dramatic decline of 53.1 percent in July 2024 compared to the same period last year. This marks the second-worst drop in the country's corporate history, according to the National Institute of Statistics and Geography (INEGI).
The INEGI indicator, which measures steel production, plummeted to 39.6 points in July, the second-lowest level in its statistical history. The lowest point was recorded in June 2024 with 31.7 points.
The primary cause of this significant contraction in steel production was the accidental shutdown of an ArcelorMittal Mexico blast furnace in Lázaro Cárdenas, Michoacán from May 24 to July 19. Despite the company stating that the restart would take two months, the exact date for the resumption of production remains uncertain.
The shutdown of the blast furnace had a severe impact on the basic iron and steel industry in Mexico, which integrates steel complexes and the manufacture of primary slabs. This disruption led to a widespread decline in steel production across the country.
Throughout its history, Mexico's steel production has faced 18 contractions of between 20 and 30 percent, six decreases of more than 30 percent but less than 40 percent, three decreases exceeding 40 percent, one decrease exceeding 50 percent, and one decrease exceeding 60 percent.
The recent decline in steel production highlights the vulnerability of the Mexican steel industry to disruptions in key facilities. The ongoing uncertainty surrounding the restart of the ArcelorMittal blast furnace adds to the challenges faced by the sector.
Mexico's steel production experienced a dramatic decline of 53.1 percent in July 2024 compared to the same period last year. This marks the second-worst drop in the country's corporate history, according to the National Institute of Statistics and Geography (INEGI).
The INEGI indicator, which measures steel production, plummeted to 39.6 points in July, the second-lowest level in its statistical history. The lowest point was recorded in June 2024 with 31.7 points.
The primary cause of this significant contraction in steel production was the accidental shutdown of an ArcelorMittal Mexico blast furnace in Lázaro Cárdenas, Michoacán from May 24 to July 19. Despite the company stating that the restart would take two months, the exact date for the resumption of production remains uncertain.
The shutdown of the blast furnace had a severe impact on the basic iron and steel industry in Mexico, which integrates steel complexes and the manufacture of primary slabs. This disruption led to a widespread decline in steel production across the country.
Throughout its history, Mexico's steel production has faced 18 contractions of between 20 and 30 percent, six decreases of more than 30 percent but less than 40 percent, three decreases exceeding 40 percent, one decrease exceeding 50 percent, and one decrease exceeding 60 percent.
The recent decline in steel production highlights the vulnerability of the Mexican steel industry to disruptions in key facilities. The ongoing uncertainty surrounding the restart of the ArcelorMittal blast furnace adds to the challenges faced by the sector.
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