MEXICO CITY Mexicos steel industry didnt
suffer any negative impact from the recent U.S. government
shutdown, according to executives from steel companies based in
the Latin American country.
However, the episode might have had a negative impact on
market sentiment, the executives added.
The shutdown, which happened after U.S. lawmakers failed to
come to terms on a budget deal, didnt last long enough to
force Mexican steelmakers to take any particular measures, most
market participants surveyed by AMM sister publication
Steel First said.
But beyond the impact on the Mexican steel industry,
we are concerned about consumer sentiment ... they could
stop their purchases due to the uncertainty that this issue
generates in the U.S. economy and the rest of the world,
Arturo Marroquín, general manager at Mexican service
center Acero Prime S de RL de CV, said.
Had the shutdown lasted longer, a lot of service centers
might have had to take measures to avoid damages, he added.
Some service centers would have had to check their
inventory levels to offset the impact on border-crossing
times, Marroquín said.
Mexicos biggest integrated steelmaker, Altos Hornos de
Mexico SA de CV (Ahmsa), didnt notice any negative
effects from the shutdown, company spokesman Francisco
Orduña said. We do not sell to the U.S.
government. We have not felt any impact so far.
Kansas City Southern de Mexico SA de CV, which carries about
40 percent of the countrys rail cargo, also didnt
experience any negative effects.
We have not felt the impact from the government
shutdown, although we have seen the risk of a financial crisis
in Mexico, according to a sales executive at the
Some Mexican economists have predicted that the impact of
the U.S. budget and deficit on the steel industry will only be
felt next year.
Mexican steel producers ArcelorMittal Mexico SA de CV
and Industrias CH SAB de CV, as well as steel service center
Grupo Villacero SA de CV, didnt respond to requests for
comment on the issue.
The United States is Mexicos top trading partner and
is the destination of about 77.5 percent of Mexican exports,
according to figures from the U.S. Embassy in Mexico.
Total U.S. goods trade with Mexico equalled $493
billion in 2012, 7 percent more than in 2011, the embassy
Mexico exports more goods and services to the United States
in just over a month than it does in one year to the 27
countries of the European Union, the embassy added.
A version of this
article was first published in AMM sister publication Steel