Mexican steel output growth seen slowing in 2012

MONTERREY: Growth in Mexican steel production will probably ease to 3 percent in 2012 as a US economic slowdown drags down the local economy, the country's iron and steel industry association said on Wednesday.

In 2011, the association, known as Canacero, expects steel output to grow by around 3.6 percent to some 17.3 million tonnes.

Canacero director Octavio Rangel told Reuters he expected the pace of economic activity in the United States to ease in the second half of 2011.

"If there's a slowdown at the end of the year, we're obviously going to suffer as a result," he said.

Mexico's industry is heavily dependent demand in the United States, as companies send 80 percent of their exports there.

Analysts have begun revising down their forecasts for Mexican growth in 2011. Earlier in the year, a number of economists had seen Mexican growth of close to five percent, though many believe it may now even fall short of four percent.

Copyright Reuters, 2011