Mexico to Prioritize National Steel Sourcing in Public Works

SEATTLE (Scrap Monster): The federal government and representatives from the steel, housing, and construction sectors signed the Agreement for the Promotion of the Mexican Steel Industry. This initiative seeks to prioritize the use of domestic steel in public works, facilitate import substitution, and support national employment.
Minister of Anticorruption and Good Government Raquel Buenrostro stated that the agreement rests on three pillars: public procurement, infrastructure financing, and high-impact construction commitments, particularly within housing programs.

Under this new framework, government agencies will coordinate to favor national production while establishing supply agreements with the private sector to ensure quality, fair pricing, and timely delivery. Development banks will provide financial backing for public, private, and mixed infrastructure investments. Additionally, industrial policy under this agreement includes defense against unfair trade practices and the promotion of national suppliers to support industrialization and economic growth.

Minister of Economy Marcelo Ebrard described the steel industry as a strategic asset for the country’s productive autonomy. He noted that the central objective is for government institutions to prioritize products made in Mexico, emphasizing that the location of manufacture is as significant a factor as the price point. 

“The steel industry is vital for our productive autonomy and the security of our supply chains. Mexican steel produces essential inputs for almost every industrial chain in the country. Therefore, we must protect it, as it creates significant value and employment,” he added.
Sergio de la Maza, President, National Chamber of the Iron and Steel Industry (CANACERO), indicated that the agreement supports approximately 90,000 direct jobs. He further noted that the pact provides certainty for ongoing investments exceeding US$8 billion while aiming to improve the competitiveness and sustainability of the domestic industry.

Carlos Ramírez, President, National Chamber of the Housing Development and Promotion Industry (CANADEVI) reported that the housing sector is a primary consumer of steel and relies almost entirely on national manufacturing. He highlighted the Housing for the Well-being Program and stated that the private sector intends to invest an additional MX$640 billion (US$365.6 billion) in middle-income housing, representing approximately 128,000 units.

Luis Méndez, President, Mexican Chamber of the Construction Industry (CMIC), stated that the construction sector consumes nearly 60% of the country's steel. He noted that the availability and origin of the material directly influence costs, project timelines, and the participation of Mexican companies in infrastructure development.

President Claudia Sheinbaum noted that the agreement aligns with the goals of Plan México to ensure that goods produced in Mexico are consumed domestically. However, the president clarified that the government will continue to permit the import of specialized materials that are not manufactured within the national territory.

Courtesy: www.mexicobusiness.news