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Try the Free AI Search EngineMexico’s Steel Market Soars Amid New Tariffs: Key Insights for Buyers
Recent legislative moves by the Mexican government to impose tariffs of up to 50% on various imports from Asia, particularly Mexico Announces Up To 50% Tariffs On India, China And Other Asian Countries — Details Inside and Mexico approves tariff increases on Chinese and other Asian imports, have fostered a markedly positive market sentiment. These tariffs, set to take effect from January 1, 2026, are anticipated to stimulate domestic steel production, as evidenced by observable surges in plant activity levels.
The latest satellite activity data indicates significant fluctuations across Mexican steel plants. The ArcelorMittal Lázaro Cárdenas plant showcased a peak activity of 100% in October, remaining a standout performer, with consistent operations yielding robust output. Conversely, Ternium Guerrero and Deacero Saltillo-Ramos Arizpe experienced diminishing productivity levels, culminating in respective drops to 24.0% and 21.0%, with no direct ties to the aforementioned tariffs. The overall mean plant activity across Mexico reflects a decline to 20%, which further emphasizes the stark variance among individual plants.
The Deacero Saltillo-Ramos Arizpe facility, focused on electric arc furnace (EAF) production of semi-finished and finished rolled products, showed stable patterns during earlier months. However, from September onward, it declined significantly to 21% without a clear relational factor to recent policy changes, suggesting that broader economic pressures might be influencing the downturn.
In stark contrast, Ternium Guerrero displayed a gradual decline from a high of 44% in June to 24% in October. The absence of explicit links with the tariff announcements suggests potential internal operational adjustments rather than external pressures.
Given these dynamics, buyers are advised to strategically increase procurement from ArcelorMittal Lázaro Cárdenas while exploring collaborative arrangements with Deacero Saltillo-Ramos Arizpe and Ternium Guerrero, should production levels rebound. Careful monitoring of how new tariffs reshape demand and pricing within the domestic market will be essential. Each procurement strategy should be aligned with these observed plant activities, particularly as some facilities may strengthen their foothold in anticipation of a more protective trade environment.