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Mexico’s Basic Iron and Steel Industry GDP: Delayed Recovery

The Gross Domestic Product (GDP) of Mexico‘s basic iron and steel industry has yet to recover the levels in real terms that it had before the Covid-19 pandemic.

In the first half of 2022, the GDP of this industry was 116,777 million pesos at 2013 prices, an increase of 3.3% year-on-year, according to Inegi data.

However, the same amount represents a 5.5% drop compared to the first half of 2019, the year prior to the pandemic.

The production of the basic iron and steel industry occurs in steel complexes, that is, economic units mainly engaged in the primary smelting of crude iron and the manufacture of steel, ferroalloys, finished products such as pipes, poles, profiles, wire rod, cables, rods and angles, and coke, carried out in steel complexes.

It also includes the manufacture of primary slabs and ferroalloys, which are, in turn, economic units dedicated mainly to the manufacture, from purchased pig iron, of primary slabs such as ingots, slabs, billets, billets, and billets, and ferroalloys from purchased material.

Iron

Regarding imports into Mexico, the U.S. Department of Commerce indicates that U.S. exports of steel products are duty-free; however, U.S. exporters should be aware of the administrative procedures their buyers must follow before shipping the merchandise.

Since 2014, Mexican customs have required more information on steel products in their effort to process legitimate steel shipments from the United States.

Now, Mexican importers are now required to submit detailed material information prior to the shipment’s arrival at customs.

U.S. exporters must provide their Mexican customers with a rolling test report or a material quality certificate from the steel mill from which the raw material is sourced.

This is regardless of whether the products are secondary or tertiary (e.g., bolts made from rebar are tertiary, as the rebar itself is a secondary product of the mill).

Tertiary producers must request the test report from their secondary producers, who in turn obtain the report from the mill.

 

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