The value of metal scrap imported to Mexico fell by 30.0 percent year-over-year in March, amounting to $79 million. This marks one of nine declines in the past 12 months, according to an analysis by SteelOrbis based on data from the national statistics agency Inegi.
The import volume was the second lowest in the past 15 months, and it was the seventh time in the past 12 months that monthly imports fell below $100 million. Specifically, the import value in March 2024 was the lowest in the past four years, only surpassed by $46 million in March 2020.
The consumption of domestic or imported metal scrap is closely linked to steel production. In Mexico, steel production has been in a consecutive annual decline for 16 months, with the most recent public information indicating an 11.1 percent annual reduction on a monthly average up to March.
Meanwhile, scrap exports from the Mexican market increased by 15.2 percent year-over-year in March, reaching $48 million. This marks the ninth consecutive annual increase.
From January to March, cumulative imports decreased by 10.7 percent to $275 million, the lowest figure in the past five years. Cumulative exports for the same period amounted to $137 million, a 41.1 percent increase compared to the same period last year.
According to the National Chamber of the Iron and Steel Industry (Canacero), 54 percent of the primary steel produced in Mexico is made using metal scrap. In 2023, a total of 16.2 million metric tons of steel were manufactured.
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