Iron & Steel Manufacturing in Mexico - Industry Market Research Report

Forged in steel: Volatile steel prices are expected to stabilize, boosting industry revenue

Iron & Steel Manufacturing in Mexico
The Iron and Steel Manufacturing industry in Mexico consists of operators primarily engaged in the manufacturing of various forms of steel and iron, including pig iron in molten or solid form and steel and ferroalloys. This industry is highly volatile since revenue is strongly tied to the world price of steel. Operators are able to leverage higher selling prices when the price of steel increases, resulting in revenue gains. However, when the world price of steel declines, operators must lower their prices to remain competitive with other domestic and international players. Moreover, the world price of steel experiences drastic fluctuations because it is influenced by global supply and demand trends. Over the five years to 2019, industry revenue is expected to increase. However, this trend masks the highly volatile nature of revenue growth over the past five years. Over the five years to 2024, conditions are anticipated to improve for industry operators, as the world price of steel is forecast to stabilize, resulting in relatively stable revenue growth. Moreover, operators are expected to experience an uptick in export revenue, which declined during the previous period, helping offset the continual pressure of import penetration. This industry in Mexico comprises establishments mainly engaged in manufacturing pig iron in molten or solid form and manufacturing steel, ferroalloys, finished products such as pipes, tubes, profiles, wire rods, wire, rods and angles, and coke, which are made in steel foundries, and the manufacturing of primary slabs from purchased cast iron and ferroalloys from purchased material. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.