Skip to content

Value Chain Definition on the Steel in Mexico.

The steel industry value chain in Mexico is a complex network of interconnected activities, beginning with the sourcing of raw materials and extending through various production processes, manufacturing, distribution, and ultimately, the end-use by diverse sectors. This chain is vital to the Mexican economy, providing essential inputs for key industries like construction, automotive, and manufacturing. The industry in Mexico is characterized by a strong reliance on Electric Arc Furnace (EAF) technology and a growing emphasis on recycling.

Value Chain outline

The value chain of the steel industry in Mexico can be broken down into the following comprehensive steps:

  • Raw Materials Sourcing and Processing: This initial step involves obtaining the fundamental inputs required for steel production.

    • Identification and description of segments for each step of the value chain: This step includes the extraction of virgin raw materials and the collection and preparation of recycled materials (scrap).
    • List of types of players in each segment: Mining companies (for iron ore, coal, limestone) and scrap metal collection and processing yards/companies.
    • Detailed description of the main activities within each segment: Activities include exploration, extraction (mining) of iron ore, coal, and limestone; crushing and initial processing of mined materials; collection, sorting, cleaning, and processing (shredding, baling, cutting) of ferrous scrap from end-of-life products, industrial waste, and other sources; and transportation of these raw materials to steel production facilities.
    • List examples of key players with detailed profiles: While specific standalone raw material suppliers solely for the steel industry in Mexico are not prominently detailed in the provided sources, major integrated steel producers often have their own mining operations or significant long-term supply agreements. DEACERO is mentioned as having recycling centers, indicating their involvement in scrap processing.

  • Primary Steel Production (Siderurgy): This is the core manufacturing stage where raw materials are transformed into crude steel.

    • Identification and description of segments for each step of the value chain: This step primarily involves the operation of steelmaking furnaces. In Mexico, the dominant segment is production via Electric Arc Furnaces (EAF), which utilize a significant amount of steel scrap. A smaller portion of production may still involve Basic Oxygen Furnaces (BOF) which primarily use pig iron from blast furnaces.
    • List of types of players in each segment: Integrated steel mills (operating blast furnaces, BOFs, and EAFs) and mini-mills (primarily operating EAFs using scrap).
    • Detailed description of the main activities within each segment: Activities include the melting of raw materials (iron ore and/or scrap) in high-temperature furnaces; refining of the molten metal to remove impurities and adjust the chemical composition to meet specific steel grades; and tapping the molten steel into ladles for further processing. Mexico's production was approximately 19.6 million tonnes in 2022, with 93.5% using the EAF process.
    • List examples of key players with detailed profiles: ArcelorMittal, AHMSA (Altos Hornos de Mexico), Ternium Mexico, DEACERO, Grupo Simec, and Tamsa are identified as major steel producers in Mexico. ArcelorMittal has historically held a significant market share. AHMSA is noted as a large producer with substantial capacity.

  • Semi-finished Products Casting: The process of solidifying molten steel into intermediate shapes for subsequent processing.

    • Identification and description of segments for each step of the value chain: This involves continuous casting to produce standard shapes like billets (for long products), blooms (larger than billets, also for long products), and slabs (for flat products).
    • List of types of players in each segment: Primarily integrated steel mills that perform primary production.
    • Detailed description of the main activities within each segment: Molten steel from the furnace is poured into a continuous casting machine, which solidifies the steel into a continuous strand with the desired cross-sectional shape (billet, bloom, or slab). This strand is then cut into specific lengths.
    • List examples of key players with detailed profiles: The major steel producers are the key players in this integrated step of the value chain.

  • Rolling and Further Processing: Shaping the semi-finished products into a wide variety of steel products with specific dimensions and properties.

    • Identification and description of segments for each step of the value chain: This includes hot rolling (processing at high temperatures to reduce thickness and shape) and cold rolling (processing at room temperature for improved surface finish, strength, and dimensional accuracy). Further processing includes drawing (producing wire), extruding (creating complex profiles), and applying various finishes or coatings like galvanizing or painting to enhance properties like corrosion resistance.
    • List of types of players in each segment: Steel mills with integrated rolling facilities, specialized re-rollers, processors, and steel service centers.
    • Detailed description of the main activities within each segment: Semi-finished products are heated (for hot rolling) or used at ambient temperature (for cold rolling) and passed through a series of rollers to achieve the desired shape, thickness, and mechanical properties. Subsequent processes like drawing, extrusion, and surface treatments are applied as needed to produce a wide range of finished and semi-finished steel products.
    • List examples of key players with detailed profiles: The major steel producers are significant players in this stage, offering a diverse portfolio of rolled and processed steel products. Steel service centers also play a role in providing processed materials to specific customer requirements.

  • Manufacturing and Fabrication (Metalworking): Transforming steel products into components, sub-assemblies, and finished goods.

    • Identification and description of segments for each step of the value chain: This is a broad segment encompassing various industrial activities, including the manufacturing of automotive components, structural steel fabrication for construction, production of industrial machinery and equipment, manufacturing of appliances and metal consumer goods, and the creation of infrastructure components.
    • List of types of players in each segment: Automotive manufacturers and their supply chain companies (Tier 1, 2, etc.), construction companies and steel fabricators, general metal fabrication shops, machinery and equipment manufacturers, appliance manufacturers, and companies in the energy sector utilizing steel products.
    • Detailed description of the main activities within each segment: Activities include cutting, bending, stamping, machining, welding, assembling, and finishing steel components and products according to specific designs and requirements of downstream industries.
    • List examples of key players with detailed profiles: This segment involves a vast number of companies across multiple industries in Mexico. Major automotive plants, large construction firms, and manufacturing companies are key consumers and transformers of steel at this stage.

  • Distribution and Commercialization: The process of getting finished steel products to the end consumers and industries.

    • Identification and description of segments for each step of the value chain: This includes direct sales from steel producers to large customers, sales through steel service centers that offer processing and inventory management, and distribution through wholesalers and retailers for smaller volume buyers.
    • List of types of players in each segment: Sales departments of steel mills, independent steel service centers, steel traders, wholesalers, and retailers.
    • Detailed description of the main activities within each segment: Activities include managing inventory, order fulfillment, transportation and logistics, sales and marketing, and providing technical support to customers. Service centers often provide value-added services like cutting to length or slitting coils.
    • List examples of key players with detailed profiles: Major steel producers have established sales and distribution networks. Numerous steel service centers operate throughout the country to serve various industrial needs.

  • End Use Sectors: The industries and applications where steel products are finally utilized.

    • Identification and description of segments for each step of the value chain: Key sectors include construction and infrastructure (residential, commercial, and industrial buildings, bridges, roads, pipelines), the automotive industry (car bodies, chassis, engines, components), general manufacturing (machinery, equipment, tools, appliances, furniture), and the energy sector (pipelines, platforms, storage tanks).
    • List of types of players in each segment: Construction companies, real estate developers, automotive manufacturers, machinery manufacturers, appliance manufacturers, oil and gas companies, and various other manufacturing businesses.
    • Detailed description of the main activities within each segment: These sectors consume steel as a primary material in their production processes or projects, fabricating and assembling it into final structures, vehicles, products, or infrastructure.
    • List examples of key players with detailed profiles: Major players in these sectors represent the significant demand for steel in Mexico.

  • Recycling: The crucial step of recovering and processing steel scrap for reintroduction into the primary production process.

    • Identification and description of segments for each step of the value chain: This involves the collection of obsolete steel products and industrial scrap, sorting and processing it to meet quality standards for steelmaking, and transporting the processed scrap to steel mills.
    • List of types of players in each segment: Scrap metal collectors, scrap yards, metal recycling facilities, and steel producers with integrated recycling operations.
    • Detailed description of the main activities within each segment: Activities include gathering scrap from various sources (demolition, manufacturing waste, end-of-life vehicles and appliances), sorting different types of metals and removing impurities, processing the scrap through shredding, baling, or cutting to prepare it for melting, and supplying the processed scrap to steel mills as a key raw material, particularly for EAFs. Mexico recycles a significant amount of steel annually, estimated at 9.8 million tons.
    • List examples of key players with detailed profiles: DEACERO is highlighted for its involvement in steel recycling.

  • Show estimates of volumes and sizes of each step in the value chain:

    • Mexico's annual steel production was around 19.6 million tonnes in 2022, with projections for 18.3 million metric tons in 2024.
    • Apparent steel consumption was estimated at 25 million tonnes in 2022.
    • Finished steel imports were 46% of consumption in 2024, projected to reach 12.6 million metric tons.
    • Mexico consumes approximately 30 million tonnes of steel annually.
    • Specific volume data for each granular step (raw material types, semi-finished products) is not consistently available across the provided sources. However, the overall production and consumption figures indicate the scale of activities across the chain.

Value Chain Summary Table

Value Chain Step Main Activities Segments Types of Players Examples of Key Players Estimated Volumes/Sizes (where available)
Raw Materials Sourcing & Processing Mining (Fe, Coal, Limestone), Scrap Collection & Processing, Transportation Mining, Scrap Processing Mining Companies, Scrap Processors Integrated Steel Producers (involved in mining), DEACERO (recycling) Iron ore production ~11.4M tonnes (2020), 9.8M tonnes steel recycled annually
Primary Steel Production (Siderurgy) Melting (EAF, BOF), Refining EAF Production, BOF Production Integrated Mills, Mini-Mills ArcelorMittal, AHMSA, Ternium, DEACERO, Simec, Tamsa ~19.6M tonnes (2022), 18.3M tonnes (proj 2024). 93.5% via EAF.
Semi-finished Products Casting Continuous Casting (Billets, Blooms, Slabs) Billets, Blooms, Slabs Integrated Steel Mills Major Steel Producers Integrated within primary production volumes.
Rolling and Further Processing Hot Rolling, Cold Rolling, Drawing, Extruding, Finishing (Galvanizing, Painting) Hot-Rolled, Cold-Rolled, Long Products, Flat Products, Tubes, Coated Products Steel Mills with Rolling, Re-rollers, Processors, Service Centers Major Steel Producers Forms part of total steel production.
Manufacturing & Fabrication Cutting, Bending, Machining, Welding, Assembly Automotive, Construction, Machinery, Appliances, Metal Structures Automotive Manufacturers, Construction Firms, Fabricators Numerous companies across diverse industries. Significant consumer of finished steel products (~30M tonnes/year consumption)
Distribution & Commercialization Warehousing, Logistics, Sales, Marketing Direct Sales, Service Centers, Wholesale, Retail Steel Producers (sales), Service Centers, Traders Sales arms of major producers, various service centers. Handles volumes of both domestic production and imports.
End Use Sectors Utilization of steel in final products and projects Construction, Automotive, Manufacturing, Energy Construction Companies, Auto Manufacturers, Industrial Firms Numerous companies across diverse industries. Apparent Consumption ~25M tonnes (2022), Total Consumption ~30M tonnes/year
Recycling Scrap Collection, Sorting, Processing, Supply to Mills Scrap Collection, Scrap Processing, Scrap Trading Scrap Collectors, Recycling Facilities, Steel Producers DEACERO (involved in recycling) 9.8M tonnes steel recycled annually

Examples of Main Players

ArcelorMittal: A global steel giant with a significant presence in Mexico, particularly known for its large-scale operations. Historically, ArcelorMittal has been cited as the largest steel producer in Mexico by production volume. Their operations likely span from primary production to the manufacture of various finished and semi-finished products.

AHMSA (Altos Hornos de Mexico): Identified as a major steel producer with an extensive industrial chain covering iron ore mining to diverse steel products. AHMSA has a substantial production capacity and is a key player in the Mexican steel landscape.

Ternium Mexico: Another prominent steel company in Mexico, part of the Ternium group. Ternium is a significant producer of flat and long steel products and plays a crucial role in supplying steel to various industrial sectors in Mexico.

DEACERO: A major Mexican steel company recognized for its vertical integration, including steel recycling operations. DEACERO is a significant producer of long steel products and is known for its focus on sustainability through recycling.

Grupo Simec: A steel company with operations in Mexico and other countries. Grupo Simec is a notable producer in the Mexican market.

Tamsa (Tubos de Acero de México, S.A.): A specialized producer, primarily known for seamless steel pipes, serving sectors like the energy industry.

Volumes and Sizes

The Mexican steel industry is a significant player regionally and globally. In 2022, the country's steel production reached approximately 19.6 million tonnes. Projections for 2024 indicate a production volume of around 18.3 million metric tons. Apparent steel consumption was estimated at 25 million tonnes in 2022. Total steel consumption in Mexico is approximately 30 million tonnes annually.

Imports play a substantial role in meeting domestic demand, accounting for 46% of consumption in 2024 and projected to be around 12.6 million metric tons in the same year. Bilateral steel trade with the United States is considerable, with Mexico importing approximately 4.4 million tonnes from the U.S. and exporting around 3.2 million tonnes to the U.S. annually, resulting in a trade surplus for the U.S.

Major players hold significant market share. While specific recent market share data for individual companies is not consistently available across the provided sources, historical data from 2010 indicated that ArcelorMittal held 24% of the production, and the top five companies (ArcelorMittal, AHMSA, Ternium Mexico, DeAcero, and Tamsa) collectively accounted for 85% of national production. AHMSA was noted to have a production capacity of 5.5 million tons per year. The industry contributes significantly to the Mexican economy, representing 1.4% of the national GDP and 8.7% of the manufacturing GDP.

References

CANACERO - The Mexican Steel Industry Acknowledges And Thanks The Ministry Of Economy For Its Negotiations With The Unite. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXFDDkrny3i2zjZxGEeM_kpXIWv8V1cdb0G-l_Oh0SfFuq3kta0J84GTOr1H0Via6A3JyTR2Nml-4zRZqzrFRwI-bOIfy6x6P8T7Vx6_jd9YrOCJPd01ZXMMqO-GarXIvS8Yt_x2dDEiyHf8gtI9rIbnNQhJusddzM4o7-ohiVWoDSXtMknyO95KQgMIjcxw3xZzSW8=

DEACERO Blog - Proceso de Producción del Acero en México: Conoce su paso a paso. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXFwZmmFEum8DNb6GKatt1R1dqVvKIle1y_BZ-StGvrkHAexDwfx1T9Za4JOXBxOX6O91oTPqtIyd6LMLQpIAVlIYfVokrATUc0aEusSYrqo3t4zresPp6wVaCz_mnsbrqz6caxoI5Zy0L6m4Ku0ECb7QTNiBAhFpqaHXg==

Mexico News Daily - Mexican steel confirms US $8.7 billion investment. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXGdTsav35PHxv9IPnCuhRfut4hCei_Yme9olRJFw70kuooA0QLrlhBKTobQQm4Hq4bdZcbBowMxY2wWeXFPixUdQd1EmYpTnNiXjReByvyw5D7FpC_-C3q9KB_iidaMkg55878TVHQoCr9rzsqRzib_L8_HBIjfLfs4rgRNme3Hc3rny4TN1CmAEiVgPQ==

RC Racks - Manufactura del acero. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXEqqX3UsUhLB8n2mB8KuPNFvMaWQ5_qnFNhT20nG8aSpzXWugGsMzUhc9yGUuy5qyHbm30vFdNdks1JeyYYXmVYlDSjUh7wloklwssuuPIBb1AOWWz_rk6X96WHX1IGgA==

Thermopanel - Descubre el proceso de fabricación del acero y sus fases. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXEX97vtQ36KBsbgYi0PC4CrMy-q8ZC-jeFmxgPn8UQXs3qBvpwYhInNcDQrZTU3ehMauEuUVR-ze4EUzYPau3kBn863GgxsG6m58GpeYyQUUjKBMD2u05k7eyh3zV5gKiNIOPMAR0ku7zudIxK2ELmUX6Vel-eTJCO-Xz7AbXLQlactSKj9_H0=

Ternium - Industria del acero: generador de empleo en México. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXFTvP0niqPK-vRub44yZUmkj-Jlxju-sMxniL_I9HUZbZSu5hPyyRsqd-sV_U2h2dqFQtq4j3v7C8xU8MujmjO_Va5sMFCyPcLQV6eIjhrchzxGE537FTED_CkBMZfkxZxc0TwFS0jmGzEfbiHYQhBmDNCgKsdexLINUptZkCPxgu6eEypZtkZOsPPTOZUBUId5LcjMhw==

Ulbrinox - Proceso de fabricación del acero inoxidable. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXHI1lLOz6PgSdNTrIP3cwbEMkNwY8kYh7-SAYa1XT7uVue5YBX2XO9Nfwo5ySBqqQQtpJ-R27L8M4W7R-kqT7URRkckeQN6T5CsyKLRCzoQXLw7EjyanI8rUy9UpGBdEdH5coAKNv7raXmXh0_0wAQKY3ZV6YDKhiV-kHM6TUrjugyH

Max Acero Monterrey - Ciclo de vida del acero. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXERLIdaBjiQQ9devkOZoFyU2dNGiW8rMdCA9QNEfq5lVbj5nBk1eDGu6kNHfj3dqAf6Vf7P0k3oPxnT1phGT3_ntoz-8ZHej4_NmOX1vE-vsYO1o9M-6q0f1hDnFvv_7xs5aOxgTx5S

Metalmecánico - One Planet network. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXHiGmIxlNvEcHcU_tONOfpB0jozLNEDDunFobbCe0q8qkQqvOVrnxKDue7sTqrXTVFMSt7_lVFzVFIpNhFF2Yxnfa4vKPjCaklItoyGNj-Tw5Vcwq5XKflcIYRtkKNOU1Gb-997SZMkUALFuEjWIlQMlRh5wkTf--KmZ0ELpARRD44=

Mexico Steel Industry Research Report 2023-2032. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXH7_3OLpEtolB-qjnic8TPBgATw6O0LVeei3qqCxom6KK3uRW3goNQn8GssJYK_dzKaaqWrxEmWrnKTM5C2iyEXB3Y1BA1KfUH180eJnIr_m6w5EMm5Td3HRhmaODPhzw1bt9uN6PL2JsRotYJJDIPtabC7bfMWwcqluKrntnrXL_j4bAM3ATQK8RQnba1J

Argentina.gob.ar - INFORMES DE CADENAS DE VALOR. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXEgcCJDReUIHp0JJE6Ynwca0UxEwshy77gto1HNiPCjy_mr7dPynXgO2t81-s2mp5rvZR4x3H-j9nbW5oX4I2ywqw7wuEl_oAnc5PPEetqmGrtOSxzqb0mKhr_BPFrp-DM96EMFh8R-eDTPHuZLx5Ly-pX1v3tYiYxHmMw7wHpP3Op4MPd7UTuyDSw5U-_Hry9l

Dialnet - El estilo de gobernanza en la cadena de valor de la industria del acero en México. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXGP1oHZNY5_rGmkkar3pZlSuAwt8Gd9HxDAWTdf5-ZRnAuIk15sT2HT5yquJYJ-Z21MjKh2WMGF7mpj1Yg8WbUO7dsRf7PuMPno50nAYKrSFgR5aJn3YrOOzB65HCa3KNTr0A4_lLya-JCrkTeyKrA=

ResearchGate - (PDF) Los Impactos de Sostentibilidad en la Cadena de Valor de la Industria del Acero en Mexico. https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXEjOhPzVEMj14Kx6e3dfF1RiP5nAtavCRlmz8iHAsv8RfWxk9n9_ihCLBbj0cU0tpAldkffh8bhoR7wHR-UGGIEYtqFig1RWU1lbJAkpdeo5GJg79c9uC8DLPwv0mfxOR_9ecZl-YMf9p18Fh_a1Ehi2QlmEQzz93DMua2kvS3ItgsUyCfVwu5tK8oP2Gj-MefPOhVGU4pKKxEAk7dzfvapn_7Ylewc6szVjNpv5BDFU8iN4M9sd4bpEpBa9DpDWtUCM_s=