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Weak mart conditions curb Deacero’s output

Keywords: Tags  Deacero, long steel production, steel capacity, Raúl Gutiérrez Muguerza, Acería Laminación Ramos Arizpe project, Rodrigo Alonso

MEXICO CITY — 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 Steel First.

"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 market—as 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. Deacero’s 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 Deacero’s new mini-mill, Acería Laminación Ramos Arizpe.

The plant has been working at around 40 to 45 percent of capacity, Muguerza said.

"The plant is ready, a part (of it) has already begun operations. We are on a learning curve, but we’re ready to (officially) inaugurate the plant," he said.

A version of this article was first published in AMM sister publication Steel First.

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