Business Monitor International


Mexico Metals Report

Published 18 December 2014

  • 33 pages
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$1,295.00
Mexico Metals Report

BMI View: Expansion in the automotive, manufacturing, construction, and oil and gas sectors, all of which rely on steel and other refined metals for input s , will encourage steady production and consumption growth in Mexico's metal sector to 2018. Domestic steel producers will contend with cheaper foreign imports and US duties on Mexican exports , yet investment into and output from the sector is unlikely to face significant downside risks.

Solid macroeconomic fundamentals in Mexico over the next five years will underpin production and consumption growth of Mexican refined metals production, particularly steel. While weaker-than-expected real private consumption growth throughout most of H214 has led us to downgrade economic growth in 2015 to 3.5% from 3.7%, continued recovery in the automotive, construction, and infrastructure sectors will support the steel industry. Moreover, we forecast average annual real GDP growth of 3.8% in 2016-2018. These factors should ensure Mexico remains the second-largest producer and consumer of steel in Latin America, behind Brazil.

Increasing Investment To Support Manufacturing Sector Expansion
Mexico - FDI Into The Manufacturing Sector

Mexico's auto sector in particular will continue to attract investment and see production growth given its exposure to the US, the world's largest autos market, and Latin America, which will see growing demand for autos. Reforms to the country's energy sector lead us to forecast an uptick in oil and gas infrastructure investment and therefore increased consumption of steel used in pipelines and other equipment. We recognize the potential is large, and will thus monitor investment into the country's oil and gas industry, as well as a concurrent uptick in production and consumption trends, over the coming quarters.

Auto Production Gaining Speed
Mexico - Vehicle Production & Growth

Steel To Dominate Metals Sector

Steelmaking will dominate Mexico's refined metal industry,...

Table of Contents

BMI Industry View
7
SWOT
10
Metals SWOT
10
Industry Forecast
11
Steel: Metals-Intensive Growth
11
Positive Construction Dynamics To Support Steel Demand
11
Manufacturing, Oil & Gas Sectors Also To Drive Steel Industry Growth
12
Domestic And Foreign Steelmakers To Grow Production
14
Imports To Increase
14
Table: Steel Production & Consumption (Mexico 2010-2018)
15
Table: Steel Industry Historical Data (Mexico 2005-2012)
15
Regulatory Development
17
Recent Developments
17
Business Environment To Support Steel Industry
17
Tax Regime
17
Anti-Corruption Efforts Remain Priority
18
Table: Political Overview
19
Commodities Forecast
20
Steel: Prices To Head Higher From 2016
20
Table: BMI Steel Price Forecast
20
Short-Term Outlook (three-to-six months)
20
Long-Term Outlook
21
Production: Chinese Rationalisation Measures To Bite
22
Consumption: Slowing Demand Growth On The Horizon
23
Burgeoning Chinese Exports Will Not Last
24
Eurozone Growth Downgrade Highlights Long Road To Recovery
25
Risks To Price Forecast
25
Table: Steel Data & Forecasts
26
Competitive Landscape
27
Table: Mexico - Major Metals Producers
27
Foreign Firms To Maintain Growing Presence
28
Company Profile
29
ArcelorMittal
29
Company Overview
31
Company Strategy
31
Latest Financial Results
33
Company Details
33
Financial Data
33
Table: ArcelorMittal - Key Financial Data
33
Methodology
34
Cross Checks
34

The Mexico Metals Report has been researched at source, and features latest-available data for steel, aluminium and other major globally-traded commodities. Our analysis covers all primary indicators, including production, exports and price, with our forecasts underpinned by Business Monitor International (BMI)'s macroeconomists global economic outlook. The report analyses trends and prospects and critically evaluates latest industry news, trends and regulatory developments in Mexico.

BMI's Mexico Metals Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the metals industry in Mexico.

Key Benefits

  • Benchmark BMI's independent metals industry forecasts for Mexico to test other views - a key input for successful budgeting and strategic business planning in the Mexico metals market.
  • Target business opportunities and risks in Mexico through our reviews of latest industry trends, regulatory changes and major projects and investments.
  • Exploit the latest competitive intelligence and company profiles on your competitors and peers.

Coverage

BMI Industry View

A comprehensive summary of the impact and implications of the latest regulatory developments and key forecast indicators covering metals production, consumption and upside/downside risks to our outlook. The Metals SWOT analysis outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.

Industry Forecast

Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Steel: Steel production & consumption (‘000 tonnes).
  • Aluminium: Aluminium consumption production & balance (‘000 tonnes).
  • Copper: Refined copper production & consumption (‘000 tonnes).
  • Zinc: Refined zinc production & consumption (‘000 tonnes).
  • Lead: Refined Lead production, consumption & balance (‘000 tonnes).
  • Nickel: Refined nickel production & consumption (‘000 tonnes).
  • Tin: Refined tin production, consumption & balance (‘000 tonnes).

Regulatory Development

Details of the industry regulatory framework, relevant key legislation and environmental standards that impact the metals industry. The regulatory developments section provides analysis of the overall regulatory burden, the tax regime (including income tax rates), bureaucratic framework, corruption and a country specific political overview. Details of the industry regulatory framework provide information on relevant key legislation and regulations that will impact the metals industry.

Commodities Forecast

Provides in depth coverage and forecasting of steel prices and includes BMI’s core view of what to expect in upcoming months. Within the monthly metals update, BMI provides performance data and key forecasts for select commodities, including prices for aluminium, copper, gold, iron ore, lead, nickel, palladium, platinum, silver, steel (MEPS Carbon Steel), tin and zinc.

Competitive landscape

The competitive landscape section provides comparative company analyses of detailed financial data for key listed metals firms, ranked in order of market cap (USDmn).

Company Profiles*

Examines the competitive position and short to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects. Details of products and services provide a full overview of each company’s operations.

Sources

The Metals Reports draw on an extensive network of primary sources, such as manufacturing associations, statistical bureaus, government ministries, national chambers of commerce and industry, national statistical offices, government ministries and central banks, and multinational companies.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc