Mexican domestic steel consumption to decline in 2020

Mexican domestic steel consumption to decline in 2020

Mexican domestic steel consumption this year should decline 13.4 percent, year-over-year, to 21.3 million mt, said local steel association, Canacero.

According to a media report from El Financiero, Jose Roman Vergara, trade commerce and statistics director at Canacero, said Mexican domestic steel consumption should then increase 7.3 percent year-over-year in 2021.

Vergara reportedly urged investments in the Mexican steel sector, which includes infrastructure investments in Mexico, to boost domestic steel demand.

“We expect a horizontal recovery which might take much longer (than expected). There isn’t a recovery that would be like what we had in the previous years. We expect a moderate recovery, which should be gradual,” he said at an online conference.

Vergara said infrastructure projects run by the Mexican government could generate 1.5 million mt in steel demand for local steelmakers. Such projects could benefit steelmakers like Ternium Mexico, Deacero and Villacero, the media report said, citing market analysts.

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