Mexican government seeks to boost domestic steel production as sector hits 20-year low

According to Mexico's National Chamber of the Iron and Steel Industry (CANACERO), domestic steel production stands at approximately 14 million tons per year, while steel consumption is close to 28 million tons.

This means that half of the country's steel demand is met by imports, as the domestic sector operates at one of its lowest levels in nearly two decades. However, the chamber notes that the imbalance is not due to a lack of production capacity, but rather to unfair trade practices associated with imported steel.

In response to this situation, the Mexican federal government is developing a plan to close the supply gap and reduce dependence on foreign steel. The goal is to produce up to 97% of the steel it consumes, importing only specialty steels that cannot be produced domestically.