Grupo Simec S A B De C V's Comment on Supply Chain
The company sources raw materials including scrap metal, electricity, ferroalloys, electrodes, and refractory products for steel production. Scrap metal constitutes approximately 48% of consolidated manufacturing conversion costs in 2025. The company obtains scrap metal from dealers in Mexico and the San Diego, California area, processing it at facilities located in Guadalajara, San Luis, Mexicali, and Apizaco. Refined scrap metal needs are fulfilled through the company’s wholly-owned scrap processing facilities, which supply 11% of refined scrap tonnage in 2025, and through purchases from third-party scrap processors in Mexico and the southwestern United States, accounting for 88% and 1% respectively in 2025. The company is a major scrap collector in the Mexicali, Tijuana, and Hermosillo regions and primarily sources scrap directly from small Mexican scrap collectors to secure lower prices. Additional scrap is acquired on the open market via various brokers. Fluctuations in raw material prices have impacted profit margins, and the company may encounter challenges if key suppliers fail to deliver or if supply contracts are not renewed.
Grupo Simec S A B De C V's Comment on Supply Chain
The company sources raw materials including scrap metal, electricity, ferroalloys, electrodes, and refractory products for steel production. Scrap metal constitutes approximately 48% of consolidated manufacturing conversion costs in 2025. The company obtains scrap metal from dealers in Mexico and the San Diego, California area, processing it at facilities located in Guadalajara, San Luis, Mexicali, and Apizaco. Refined scrap metal needs are fulfilled through the company’s wholly-owned scrap processing facilities, which supply 11% of refined scrap tonnage in 2025, and through purchases from third-party scrap processors in Mexico and the southwestern United States, accounting for 88% and 1% respectively in 2025. The company is a major scrap collector in the Mexicali, Tijuana, and Hermosillo regions and primarily sources scrap directly from small Mexican scrap collectors to secure lower prices. Additional scrap is acquired on the open market via various brokers. Fluctuations in raw material prices have impacted profit margins, and the company may encounter challenges if key suppliers fail to deliver or if supply contracts are not renewed.
Sources:
Grupo Simec S a b De C v 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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