Mexico Flat Steel Market Report and Forecast 2024-2032

Mexico Flat Steel Market Size

The Mexico flat steel market reached a volume of around 17,919.00 KMT in 2023. The market is projected to grow at a CAGR of 5.5% between 2024 and 2032, reaching a volume of nearly 27,361.57 KMT by 2032.

Mexico Flat Steel Market Outlook

• As of May 2024, the average monthly crude steel production in Mexico stood at 1.34 MMT. 

• Galvasid S.A. de C.V., T A 2000, S.A. de C.V. (TYASA), and Outokumpu Oyj are a few of the major companies in the Mexico flat steel market. 

• Flat steel is 100% recyclable, which expands its applications in the production of consumer and industrial goods. In 2022, Mexico’s industrial production growth stood at 5.3%.

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

Increasing flat steel demand in the automotive sector; thriving Mexico manufacturing sector; rising demand for low carbon steel; and the flourishing Mexico construction sector are favouring the Mexico flat steel market expansion

August 2024

Ternium's new USD 3.5 billion steel complex in Mexico initiated operations with the installation of its first finishing line, capable of producing 550,000 metric tons. The facility, including a 2.6 million metric ton steel shop, is set to be fully operational by mid-2026. Through the facility, Ternium aims to enhance its presence in the USMCA region and position itself as a leader in low-emission steelmaking.

July 2024

Saf-Holland, a German manufacturer of steel components for heavy truck trailer chassis, opened a USD 33 million production facility in Piedras Negras, Coahuila, Mexico. The plant specialises in producing "fifth wheels" for heavy trucks, primarily for export, with 70% of over 22,000 trucks produced in June being exported.

May 2024

Venture Steel Inc., a leading flat-rolled metal processor and distributor based in Toronto, expanded its facility in Ramos Arizpe, Mexico. The company aims to meet growing consumer demand in the Mexican manufacturing market by enhancing its capabilities through facility expansion and new processing equipment.

October 2023

Tenova, a leader in sustainable metals and mining solutions, announced its intention to provide advanced technologies for its new steel mill in Pesquería, Mexico. The USD 2.2 billion project is designed to integrate Ternium's downstream operations at the site, utilising cutting-edge technologies that comply with USMCA's "melted and poured" rule of origin and support Ternium's 2030 decarbonisation goals.

Increased application of flat steel in the automotive sector

Flat steel is used in body panels and structural elements of automobiles owing to its durability and strength. In 2023, Mexico produced around 4 million vehicles, a 14% increase compared to 2022.

Growth in Mexico’s manufacturing sector

Mexico’s manufacturing sector is expanding due to the availability of low-cost skilled labour and its advantageous location for companies looking to outsource their manufacturing operations, driving the Mexico flat steel market.

Increasing demand for low carbon steel

Mexico has embraced modern steelmaking technologies, including the electric arc furnace (EAF) technology, which is well-known for its efficiency and recycling capacity, and the basic oxygen steelmaking (BOS) process, which involves injecting oxygen into molten iron to reduce carbon content.

Mexico’s construction sector growth

Flat steel bars are essential in structural framing, offering strength and durability for long-lasting construction. Between 2023-2032, the Mexico construction sector is projected to witness an average annual growth of 2.8%, aiding the demand for flat steel.

Presence of Prominent Iron Ore Mines in Mexico

Iron ore is an essential component of steel production. As of 2024, Mexico has 10 operational iron ore mines. Some of these mines are owned by key flat steel manufacturers, such as Ternium (Pena Colorada and Las Encinas), and ArcelorMittal (Las Truchas and San Jose Iron Ore).

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.

Mexico Flat Steel Market Segmentation

The EMR’s report titled “Mexico Flat Steel Industry Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type:

• CR Coil/Sheet

• Galvanised Sheet

• HR Coil/Sheet

• HR Plate

• HR Pickled and Oil Coil/Sheet

• Electro Galvanised Sheet

• Prepainted Sheet

• Galvanneal Sheet

• Others

Market Breakup by Material Type:

• Carbon Steel

• Stainless Steel 

Market Breakup by Application:

• Automotive

• White Goods and Consumer Durables
  • Freezers
  • Air Conditioners
  • Washing Machine
  • Kitchen Appliances
  • Vacuum Cleaner
  • Microwaves
  • Others
• Electrical Equipment

• Machinery

• Others

Market Breakup by Region:

• Central Mexico

• Northern Mexico

• Pacific Coast

• The Bajío

• Yucatan Peninsula

• Baja California

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

Major players in the Mexico flat steel market are increasing their collaboration, partnership, and research and development activities to gain a competitive edge

Galvasid S.A. de C.V.

Headquartered in Mexico and founded in 2005, Galvasid S.A. de C.V. serves the appliances, refrigeration, processors, automotive, construction, and general industries. Its product portfolio includes galvanised flat steels, including rolls such as Covering G30, G40, G60 and G90, tapes, and plain sheets.

T A 2000, S.A. de C.V. (TYASA)

Headquartered in Mexico and founded in 1985, T A 2000, S.A. de C.V. (TYASA) produces and markets four major product lines: Construction steel, Coated steel, Flat steel, and Special steel. The company offers various types of steel products under various categories such as black sheet, including non-slip sheet, hot foil, and cold sheet; and galvanised sheet and colo steel painted sheet.

Outokumpu Oyj

Headquartered in Finland and founded in 1970, Outokumpu Oyj is the global leader in sustainable stainless steel, and bases its business on a circular economy, with over 90% of its production using recycled steel. Under its flat steel product portfolio, it offers cold rolled coil, strip and sheet, hot rolled coil, strip and plate, quarto plate, and precision strip.

Nippon Steel Corporation

Headquartered in Japan and founded in 1974, Nippon Steel Corporation is dedicated to advancing technologies and manufacturing excellence, contributing to society by delivering top-quality products and services. The company offers various ranges of flat steels including steel plate, stainless steel and steel sheets.

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).

Key Highlights of the Report