Business Monitor International


Mexico Metals Report

Published 18 December 2014

  • 44 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$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

Summary of BMI's key forecasts and industry analysis, covering metals production and prices, plus analysis of landmark company developments and key changes in the regulatory environment.

SWOT Analysis

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of the state's metals sector, business environment, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Global Metals Market Overview

Global demand, supply and price forecasts for steel and aluminium, as well as gold, copper and tin, drawing on both our industry expertise and our macroeconomic and financial market team's long-term global demand forecasts and shorter-term market views.

Industry Forecasts

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

Production (`000 tonnes, US$bn), consumption (`000 tonnes, US$bn), exports (`000 tonnes, US$bn); prices (US$/tonne), and growth (%).

Macroeconomic Forecasts

BMI forecasts to end-2018 for headline country macroeconomic indicators, including real GDP growth (%), GDP per capita (US$), population (mn), industrial production index (% y-o-y average) and unemployment (% of labour force).

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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