Metal Scrap Crucial for Green Steel Production, Drives Demand in Mexico


Metal scrap has become a vital raw material due to climate change, not just in Mexico but worldwide for the manufacture of green steel. 11,376 establishments in Mexico are devote to the purchase or collection of the product.

Some reports state that Mexico uses 12.5 million metric tonnes of ferrous scrap annually, of which slightly more than 25% is imported to meet the needs of at least ten major steel producers, including TYASA, ArcelorMittal, Ternium, DeAcero, Frisa, Gerdau Corsa, Grupo Acerero, Simec, and Suacero.

If the Brazilian company Gerdau chooses to construct a new steel mill for particular steels (SBQ), demand may rise. If approved, the plant will employ metal scrap and have an annual output capacity of 600,000 mt. Furthermore, Altos Hornos de México (AHMSA). Which makes steel in electric arc furnaces (EAF) as well as blast furnaces, is anticipat to resume production.

Approximately 65.2% of all establishments are centre in ten states. Among them, the state of Mexico stands out as having the second-largest economy in the nation based on GDP contribution, with 2,228 establishments, or 19.6% of the total.”