Mexican long steel products producer Deacero SA de CV has been
operating well below its full production capacity due to poor
market conditions, general director Raúl
Gutiérrez Muguerza told AMM sister publication
"This year we do not
think that we are going to increase (our) production (compared
with 2012)," he said on the sidelines of the 3rd Mexican Iron
and Steel Conference in Mexico City organized by
steel association Canacero. "We have been reducing our
production due to the marketas a company, we are working
at around 63 to 65 percent of our capacity."
The low utilization
rates mean crude steel production in 2013 is expected to remain
flat vs. 2012, according to Muguerza. Deaceros 2012
output rose 5 percent year on year to an all-time record of
2.97 million tonnes.
Weak long steel
product demand both in Mexico and abroad has also been behind
low utilization rates at Deaceros new mini-mill,
Acería Laminación Ramos Arizpe.
The plant has been
working at around 40 to 45 percent of capacity, Muguerza
"The plant is ready, a
part (of it) has already begun operations. We are on a learning
curve, but were ready to (officially) inaugurate the
plant," he said.
A version of this
article was first published in AMM sister publication Steel