Steel production expected to grow 7% this year

Mexico's steel production will reach 15.1Mt this year, a 7.1% gain over 2002 and 13.5% more than 2001, according to a report published by iron and steel chamber Canacero. The chamber expects this year's installed capacity to maintain the 18.9Mt level sustained since 2000, when it gained 400,000t from 1999, according to the report. Further, domestic steel consumption will reach 21Mt this year, a 6.1% increase over last year, while consumption of steel products will grow 8.7% to 16.2Mt, the report says. "The tariff measures the Mexican government has taken in recent years allowed a reduction in imports, generating a larger market for domestic producers, while exports grew on larger demand in China and the US," local paper El Norte quoted Casa de Bolsa Banorte analyst Francisco Suarez as saying.