The aluminum is a metal that enjoys quite versatile properties. Not only is it used in the manufacture of products, but it is also used nationally to manufacture containers, soda cans, and car parts.
The aluminum industry does not manufacture a single type of aluminum. In fact, there are many aluminum alloys, however, all industries that employ it see in it properties that work to meet market needs.
Currently, there is a high demand for aluminum in Mexico. The automotive industries generate the highest demand, registering 75% of consumption at the national level, which is equivalent to 3.5 billion dollars.
If you want to know more about aluminum in Mexico, don't miss this article and remember that Ulbrinox is your best option as an aluminum supplier throughout the country. Did you know that Querétaro, Guanajuato, and Nuevo León are the big states that drive this industry? Learn more here!
The opportunity of aluminum in Mexico for the economy
This 2022 has been quite a chaotic year unlike others. Faced with international tensions, caused by the Russian invasion of Ukraine, not to mention the economic and health crisis caused by the COVID-19 pandemic, this industry has been seriously unstable.
Currently, the aluminum industry represents a unique opportunity for the Mexican market. It is possible that we can find important strategic business partners within the metallurgical industry.
For example, as a result of the invasion of Ukrainian territory, the economic and commercial sanctions imposed on its government in retaliation have had an impact on aluminum prices and it continues to be quoted increasingly expensive in markets such as the London Metal Exchange in the United Kingdom, where it reached prices never seen before at the end of February.
On the other hand, the production and recycling of aluminum in Mexico reached almost 1,600 tons in 2019. But, in 2020, it fell by 10% due to the closure of activities. Although currently the industry of manufacturing aluminum products represents 3.5% of the country's GDP. This positions Mexico in fifth place in this sector worldwide.
Mexico as a secondary producer of aluminum
Mexico is not a primary producer of aluminum in any case. Despite this, the Mexican industry has a great capacity to generate recycled aluminum, in addition to consuming scrap. This percentage is up to 30% higher than countries like China or India.
In this sense, Mexico is self-sufficient in metals, since practically everything that is consumed has been obtained from recycling. Although there are specialties and alloys that are not developed in the country due to their sophistication, but in terms of foreign trade, it remains the second largest supplier of scrap to the United States. Especially for small and medium-sized companies.
During 2020, Mexico already transformed 2.5 million tons into different metallic elements, such as kitchen utensils, automotive equipment, and medical material. The market value exceeded 15 billion dollars thanks to exports.
Finally, as secondary producers of one of the most important non-ferrous metals worldwide, it helps the Mexico, United States, and Canada Treaty (T-MEC) work correctly, as many of the auto parts that are manufactured with aluminum are of great value in North America.
Why use aluminum?
It is a fundamental industry worldwide. It is mainly used as an input for various sectors, such as industrial, automotive, and electronics. In Mexico, it has been seen as a conducive place for its development thanks to its use in medical equipment and even for construction.
In addition, the industry of this material represents large revenues for the Mexican economy. According to data from the National Chamber of Aluminum, the main buyer of Mexican metal is the United States, which acquires about half a million tons annually.
The real opportunity of aluminum in Mexico is presented in that we are exporters of secondary aluminum and products manufactured with this material. Since more and more importance is given to the circular economy.
Mexico already exports large quantities of aluminum scrap, but it would generate a higher value if it stayed in the country to be used as raw material for aluminum alloys. Thus we will obtain greater economic and environmental gains, since secondary aluminum has a higher value.
At Ulbrinox we are experts in bringing you aluminum as raw material and we are proud to boost the Mexican economy through our services. We have different alloys to meet market needs.
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