Mexico Flat Steel Market Report and Forecast 2025-2034

Figure: Flat Steel Production in Mexico (Thousand Tonnes), 2018-2022

Mexico has 14 free trade agreements (FTAs) with different nations, including the United States, Canada, Japan, and Australia, as well as the EU. The reduced tariffs and taxes on the transport of goods further create opportunities to position Mexico as a manufacturing and nearshoring hub. In 2022, the United States and Mexico traded goods worth USD 855.1 billion.

One of the major factors driving the Mexico flat steel market growth is the expanding automotive sector. The country’s proximity to the United States, low labour and facility costs, and rising demand for cross-border logistics and automotive supply chain services are contributing to the expansion of automotive manufacturing in Mexico, aiding the demand for flat steel. Mexico is a significant producer of trucks, light vehicles, passenger cars, and auto parts. In 2023, Mexico produced 3.1 million commercial vehicles and 0.9 million passenger cars, a 14% increase compared to 2022.

Key Trends and Developments

Mexico Flat Steel Market Trends

Mexico is a major manufacturer of passenger vehicles, light vehicles, trucks, and auto parts. Flat steel is a crucial component in the production of auto parts, including doors, bonnet lids, bumpers, and other systems. By the end of 2024, automotive production in Mexico is expected to grow around 8% compared to 2023, totalling 4.1 million units. During 2020-2023, Mexico’s electronics manufacturing sector experienced 30% growth, contributing to flat steel demand due to its exceptional electrical resistivity. In August 2024, Bosch's BSH Division inaugurated its first appliance manufacturing plant in Nuevo Leon, Mexico. Construction of the plant began in July 2022 on a 430,000-square-meter site designed to meet the needs of the North American market. The factory has an annual production capacity of over 300,000 refrigerator units.

In the construction sector, flat steel is widely used for supporting and joining structural elements. It finds application in roofing, staircases, sheds, and welded structures. In H1 2023, Mexico’s construction sector grew by 29% year-on-year, supporting the Mexico flat steel market expansion. Flat steel bars are used in white goods to make the products safe, corrosion-resistant and long-lasting. Nuevo Leon is the hub of home appliances due to the presence of leading manufacturers, including Whirlpool Corporation, LG Corporation, Bosch GmbH, and Conair LLC.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Mexico Flat Steel Market Segmentation

Mexico Flat Steel Market Share

By material type, carbon steel is expected to hold a significant market share due to its hardness and improved wear resistance.

Carbon steel is composed of carbon between 0.05 and 2.10% by weight and boasts corrosion-resistant and environmentally friendly properties. It is widely adopted in applications requiring strength and hardness, such as construction, engineering, agriculture, automotive manufacturing, and shipbuilding. Some of the major companies providing carbon steel in Mexico are ArcelorMittal México and Klöckner & Co SE.

Stainless steel is growing in demand in Mexico, particularly due to the growth of consumer goods, electronics and automotive sectors. Major industrial and commercial cities, such as Monterrey, CDMX and Guadalajara, are important demand centres for stainless steel. In July 2024, Stainless-steel supplier Prominox acquired the Mexican distribution business of Outokumpu, a Finnish steelmaker. The acquisition includes the large centres in Mexico City, Guadalajara and Monterrey.

Competitive Landscape

Other key players in the Mexico flat steel market include Acerinox, S.A., Grupo Simec SAB de CV, ArcelorMittal S.A., POSCO Co. Ltd., Hyundai Steel Co., Ltd, and Nucor-JFE  Steel Mexico, S. de R.L. de C.V, among others.

Mexico Flat Steel Market Analysis by Region

Central Mexico is a prominent region due to the expanding automotive production in the region

In June 2024, Audi, the German carmaker announced its decision to invest USD 1.08 billion in electric vehicle projects in the Mexican state of Puebla.  The government and Audi aim to make the region a hub for electric vehicles, significantly providing lucrative Mexico flat steel market opportunities.

In Northern Mexico, automotive manufacturing in Mexico is primarily located in the regions of Baja California, Sonora, Chihuahua, Coahuila, and Nuevo León. Some of the automotive companies with a presence in northern Mexico include Toyota, Stellantis, Daimler Freightliner and General Motors. In July 2024, Toyota witnessed a light vehicle production increase of 1.7% to 20,191 units compared to July 2022.

The rapid industrial development in the Bajio region aids the Mexico flat steel market growth. In May 2024, EMAG Group opened its new manufacturing unit in San Isidro Business Park in Querétaro, Mexico, showcasing the company’s commitment to the region. The new production facility covers an area of 2,880 m², including 1,800 m² of production space with 30 machine assembly stations.

In the Pacific Coast, the presence of the Chip Act and nearshoring are key factors driving the industrial development in Jalisco. A significant number of investments are carried out in the region, primarily in electronic component manufacturing (17% of total foreign direct investment) and the automotive sector (14%). Some companies chosen to locate in Jalisco are Flextronics (electronics manufacturer) and Jabil (electronics).