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In keeping with declining steel output, Mexico's iron pellet production volume decreased 2.9 percent, year-over-year, in April to 591,012 metric tons (mt). Of the three big mining regions, only ArcelorMittal was in positive territory, according to data from national statistics agency Inegi reviewed by SteelOrbis. The production of iron pellets is linked to the production of steel, which in Mexico accumulated five consecutive annual decreases to April. Of the three major producing regions, the largest that contributed 60.7 percent of total production is located in the western state of Colima. The Las Encinas mines, owned by Ternium, and the Peña Colorada mining complex, jointly owned by ArcelorMittal and Ternium, operate there. In April, production was 258,542 mt, 4.5 percent less than in the same month of 2022.
The second largest region, with 20.6 percent of total production, is also in the western state of Michoacan where ArcelorMittal operates. In April, production was 110,830 mt, 2.0 percent or 2,146 mt more than the same month last year. The third region, with 20.6 percent of the total, is located in the northern city of Monclova, Coahuila, where the steel company Altos Hornos de México (AHMSA) operates. Iron pellet production decreased 2.6 percent, totaling 121,640 mt. The average value of the metric ton of iron pellets in March was MXN 1,531 pesos, a figure that at today's exchange rate represents $87/mt. In pesos, the price decreased 17.7 percent in nominal terms (without adjusting for inflation).