The Mexican steel industry is facing unprecedented underutilization, operating at only about 55% of its installed capacity, a situation not seen in the past 25 years. This alarming statistic was highlighted by Sergio de la Maza Jiménez, the newly appointed president of the National Chamber of Iron and Steel Industry (Canacero), during the organization’s 78th Assembly. This level of operational capacity poses serious questions about the viability of the industry in a market that is increasingly competitive and influenced by international dynamics.

Several factors have contributed to this current state of the steel sector, notably unfair competition from China and other Asian countries. Maza Jiménez pointed out that such competition has eroded the market share of Mexican steel producers, compelling them to operate below their potential. Additionally, he cited the impact of trade measures imposed by the United States, particularly tariffs levied under Section 232 of the Trade Expansion Act. These tariffs have not only restricted the flow of steel within North America but have also diminished the competitiveness of Mexican steel producers within the U.S. market.

The implications of this underperformance are significant for Mexico's economic landscape. With the steel industry being a crucial sector for job creation and infrastructure development, continued low operational levels could lead to job losses and hinder growth in associated industries. Maza Jiménez’s remarks signal urgent calls for policy reevaluation and strategic initiatives that could alleviate the sector's challenges and restore its competitiveness in the international market, ensuring a resilient future for steel production in Mexico.