New ARZYZ FRP project opportunity for Mexico to depend less on imports

Mexican secondary aluminium alloy smelter and distributor of primary metals ARZYZ Metals expects that the company’s new project to produce domestic flat-rolled products (FRP) will reduce Mexico's dependence on imports, a press officer told Fastmarkets on Monday June 24

ARZYZ is developing the new project to vertically integrate and better serve the domestic flat-rolled products market in Mexico.

The initiative marks the first of three stages. In this first step, ARZYZ will produce 80,000 tonnes per year, providing materials for automotive inner body parts, appliances, HVAC systems, cabinets and B&C applications.

“We expect to produce the first coil by mid 2026. We aim to lead the Mexican aluminum market through vertical integration into FRP and expand our services to the automotive and packaging industries,” the press officer said. “As a local producer, we ensure a reliable supply chain with shorter delivery times for our domestic clients, even improving their working capital. Additionally, our production volume will reduce the importation of FRP into Mexico.”

Imports of aluminium rolled products have a 30% duty, which was imposed in April by the Mexican government. Currently, based on domestic production, there’s neither the necessary volumes of FRP nor the raw material to cover demand in the country.

The tariffs were imposed in a range of 20-35% on aluminium imports from countries which Mexico does not have free trade agreements (FTAs). The measure affected the light metal’s supply chain, trade flows and premiums.

In May, the Mexican government decided to partially revoke the tariffs for aluminium under HS codes 7601.10.02 (unalloyed aluminium or ingots) and 7601.20.02 (alloyed aluminium such as billet and primary foundry alloys), which now have zero tariff again.

At that time, it was noted that there is no current national production of primary aluminum, and availability in countries with which Mexico has trade agreements is insufficient to satisfy supply for the auto industry, electronics and others.

“The joint production capacity of the United States and Canada is insufficient to cover the demand of the three countries, since only 4 million tonnes are produced [in the region], while [total] demand is 6 million tonnes. It is worth mentioning that these new tariffs open the possibility for prices to go up, as they come only for these countries,” the Mexican aluminium institute IMEDAL said at the time.

ARZYZ also added that this strategic move will reduce tariff risks and increase operational continuity and competitiveness for their clients.

“As a local producer, we reduce the risk of duties and tariff impositions, securing a reliable supply chain for our domestic customers,” the press officer said.

Interested in a forward-looking view of the base metals market to boost your business strategy? Get a free sample of our base metals price forecast today.

What to read next
Chinese authorities officially announced that they will be expanding the range of permitted recycled copper and aluminium imports from mid-November, but market participants Fastmarkets spoke to at a conference this week are not convinced that this will mean more material will be imported into the country in the short run.
Non-Chinese graphite producers were measured in their reaction to Donald Trump’s re-election on Wednesday November 6, predicting an unclear net impact of his potential policies on the build-out of supply chains for the battery raw material outside of China.
A trade group representing the US steel industry and a selection of executives with exposure to the automotive sector have highlighted their needs for the incoming second administration of new president-elect Donald Trump.
Fastmarkets is inviting feedback on the pricing methodology for MB-AL-0004 aluminium P1020A premium, in-whs dp Rotterdam and MB-AL-0346 aluminium P1020A premium, in-whs dup Rotterdam ahead of the definitive period of the European Union’s Carbon Border Adjustment Mechanism which starts from January 2026.
Cleveland-Cliffs expects 2025 to be a strong year for the company, citing decreasing interest rates, certainty after the US elections and an increase in manufacturing onshoring, top executives said in the company’s third-quarter earnings call on Tuesday November 5.
Li-Cycle announced on Thursday October 31 that it had entered an agreement with Glencore to sell 100% of the premium nickel-cobalt mixed hydroxide precipitate (MHP) production at its stalled hub in Rochester, New York – a step that could support Li-Cycle’s efforts to finalize a loan with the US Department of Energy (DOE).