Mexico to Prioritize National Steel Sourcing in Public Works

Mexico's federal government and key industrial chambers, steel, housing, and construction,  have formalized a national procurement and investment pact to prioritize domestically produced steel amid rising import pressure, with the construction and housing sectors alone accounting for nearly 60% and virtually all of their steel demand from national sources, respectively. The agreement, anchored in Plan México, commits development banks, government agencies, and private developers to coordinate supply chains. 
 

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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.

Mexican Steel’s Efforts to Lower Environmental Impact
According to CANACERO, Mexico’s steel industry generates 48% fewer emissions per ton than the global average, emitting just 1tCO₂/t compared to the world average of 1.92 tCO₂/t. This efficiency is driven by the country's production structure, where 93.5% of Mexican steel is produced via Electric Arc Furnaces (EAF). In 2023, the industry recycled 10.9Mt of steel and utilized 3.1Mt of byproducts in other processes, as reported by MBN.

Over the last decade, the Mexican steel sector has been scoring key gains in operational efficiency. The sector uses 48% less energy per ton than the global average, 11GJ/t versus 21.27GJ/t, and has reduced coke and coal consumption by 77%. Additionally, water stewardship has improved, with consumption per ton dropping by 38%, and treated wastewater now accounting for 18% of the industry's total supply.

Mexico's Push to Protect Domestic Steel
Facing a sustained import surge, Mexico's steel industry and federal government have moved decisively to defend and promote domestic production. Finished-steel output fell 8.5% between January and November 2025 to 15.5Mt, while imports climbed from 35% to 40% of total consumption,  pressure driven largely by a Chinese steel surplus estimated at 400Mt entering Mexico through triangulation schemes via Vietnam, Malaysia, Spain, Italy, and the United States.

The government's response has been broad and escalating. The Ministry of Economy issued NOM 251 in August 2025, establishing mandatory technical quality standards for construction steel to combat below-spec and underweight products. 
A review of over 2,000 foreign mill registrations, including on-site inspections across six countries, uncovered 1,062 irregular entries involving simulated production processes, prompting their cancellation. Minister Ebrard committed to eliminating fraudulent import records, reducing tariff evasion, and ending triangulation practices outright.

The industry is pushing further still, seeking tighter coordination between the Ministry of Economy and tax authorities on origin certification and customs supervision, while proposing legislative updates to extend 2024 tariff increases to construction steel products not covered under the original decree. Together, these measures reflect a concerted effort to level the playing field for Mexican producers.