TABLE 5 
 
MEXICO: PRODUCTION OF FINISHED STEEL, BY PRODUCT TYPE 
(Thousand metric tons) 
 
Product type 
1986 
1987 
l988~ 
Castings and forgings 
26 
38 
40 
Rolled products: 
 
 
 
Flat-rolled 
~2265 
2,362 
2,524 
Non-flat products 
3,116 
3,310 
3,276 
Seamless tubes 
208 
282 
340 
Total 
r5,615 
5,992 
6,180 
Preliminary. ' Revised. 
 
 
 
Source: Camara Nacional de Ia Industria del Hierro y del ¼~ero,
Informe
Anual 1988. Mexico, D.F. 
MEXICO MINERALS YEARBOOK—1988 For the fifth time in 6 years, steel
trade showed a positive balance. Exports of finished steel products amounted
to 1 . 163 million tons valued at $643 million. Mexico's quota for steel
exports to the United States was 401,000 tons in 1988. Other destinations
for Mexican steel products included other Latin American countries, the European
Community, the Soviet Union, China, and other Asian countries. Imports of
finished steel products were 588,000 tons valued at $566 million. With respect
to exports, the Mexican steel industry was expected to argue that its quota
under the Voluntary Restraint Agreement for exports to the United States
should be increased to reflect Mexico's basic shift from a net importer to
an exporter. Also noteworthy with regard to exports was the increase in the
volume of seamless pipe exports as Tubos de Acero de Mexico S.A. (TAMSA)
looked beyond PEMEX, its only domestic customer, for additional markets.

 Apparent domestic consumption of steel increased for the third year in a
row, reaching 7.22 million tons. Nevertheless consumption was below the annual
average of 7.45 million tons for the 1982—88 period and well below
the record 12.469 million tons set in 1981. A modest steel price increase
was granted in January 1988, but prices were frozen for the remainder of
the year as the Government of Mexico con- 
tinued its austerity program. Significant development events during the year
included the formal opening of the first phase of the SICARTSA II expansion
of the Siderürgica Lázaro Cárdenas-Las Truchas
S.A. (SICARTSA)
works at Lázaro Cárdenas, Michoacán, the
refinancing
of HYLSA, the granting of a $400 million World Bank loan to modernize the
steel industry, and the continued rationalization of SIDERMEX. The SICARTSA
expansion, which was expected to be completed in 1991, included a 2-millionton-per-year,
direct-reduction-iron plant, an electric furnace, and a continuous caster.
These additional facilities were expected to increase SICARTSA's capacity
from about 1 million to 3 million tons of crude steel per year. HYLSA negotiated
a reduction in its offshore debt from $1.2 billion to $574 million. In return,
it granted its lenders a 21¾ equity interest in the company. About
one-half of the World Bank loan was to go to Altos Hornos de Mexico S.A.
(AHMSA) for modernization of its Monclova works; $75 million was to go to
HYLSA, and the balance was to go to SIDERMEX for upgrading of its iron ore
and coal mines. None of the World Bank loan was to be used to fund the expansion
of the SICARTSA works. 
 The rationalization of SIDERMEX, which started with the closing of the Fundidora
Monterrey works in 1986, 
continued as several small firms were closed or consolidated, several nonintegrated
specialty firms were sold to private sector investors, and several marketing
and administrative functions were decentralized. SIDERMEX employment level
had been reduced by an estimated 15,000 persons by the end of 1988; additional
reductions were expected in 1989 and succeeding years. 
 
 Ferroalloys and Manganese.—Production of metallurgical manganese
ore
increased substantially in 1988, a!though the production of battery-grade
manganese dioxide apparently declined modestly. Production of ferromanganese
increased marginally, while the production of other ferroalloys was essentially
unchanged. The principal producer of both manganese ore and ferroalloys continued
to be Cia. Minera Autlán S.A. This company mined and calcined
manganese
carbonate ore at facilities near Molango, Hidalgo; produced ferroalloys at
Tamós, in the State of Veracruz near Tampico and Teziutlan, in
the
State of Puebla; and mined battery-grade manganese ore at Nonoalco, Hidalgo.

 
 Lead.—The indicated mine production of lead declined for the fifth
year in a row, and production of primary lead from smelters and refineries
dedined for the fourth consecutive year. The progressive decline in lead
production cannot be attributed to any single factor, but extends across
the entire group of lead producers. 
 
 Silver.—Mine production of silver registered a slight decline
from
the 1987 level and was about 2.5% lower than the recent production high achieved
in 1986. Nevertheless, the average annual production of 73.9 million troy
ounces for the 1983—88 period was 70¾ greater than the
average
annual production of 43.4 million ounces achieved during the 
32 years from 1951 to 1982. The relatively high level of silver production
during 1983—88, when compared with 
 
1065