"Mexico Metals Report Q3 2014" Published

From: Fast Market Research, Inc.
Published: Thu Jul 17 2014


BMI Forecast: We expect expansion of the automotive, manufacturing, construction, and oil and gas sectors, all of which rely on steel and other refined metals as input s , will lead to steady production and consumption growth for Mexico's metal sector in 2014-2018. Domestic steel producers are likely to fac e pressure from both cheaper foreign imports and US duties on Mexican steel, though we do not believe either will significantly impact the sector.

We anticipate strengthening macroeconomic growth in Mexico over the next five years, driven by growth in automotive production, general manufacturing, and infrastructure, will drive production and consumption growth of Mexican metals, particularly steel. We forecast real GDP growth of 3.3% in 2014, far stronger than growth of 1.1% in 2013. For 2015-2018 we forecast average annual growth of 3.8%.

Full Report Details at
- http://www.fastmr.com/prod/850892_mexico_metals_report_q3_2014.aspx?afid=301

Mexico's auto sector will continue to see investment and production growth given its exposure to the US, the world's largest autos market, and Latin America, which will see growing automotive consumption. Reforms to the country's energy sector lead us to forecast an uptick in oil and gas infrastructure investment and therefore increased consumption of steel used in pipelines and other equipment. We recognize the potential is large, and will thus monitor investment into the country's oil and gas industry, as well as a concurrent uptick in production and consumption trends, over the coming quarters.

We expect steelmaking to dominate Mexico's refined metal industry, with both domestic and foreign producers growing their presence in the country. We expect domestic producer Altos Hornos and Luxembourg-headquartered ArcelorMittal to remain two of the country's top producers. While Mexican steelmakers have invested in iron ore production, they remain less...

The Mexico Metals Report has been researched at source, and features latest-available data for steel, aluminium and other major globally-traded commodities. Our analysis covers all primary indicators, including production, exports and price, with our forecasts underpinned by Business Monitor International (BMI)'s macroeconomists global economic outlook. The report analyses trends and prospects and critically evaluates latest industry news, trends and regulatory developments in Mexico.

BMI's Mexico Metals Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the metals industry in Mexico.

Key Benefits

* Benchmark BMI's independent metals industry forecasts for Mexico to test other views - a key input for successful budgeting and strategic business planning in the Mexico metals market.

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
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