Grupo Simec is a Mexican steel manufacturer that produces and sells long steel products — primarily rebar, structural steel (I-beams, channels, angles), and Special Bar Quality (SBQ) steel — across operations in Mexico and Brazil. Simec makes money by converting scrap metal into finished steel and selling it at a spread above input costs, with scrap accounting for roughly 62% of manufacturing conversion costs. The company operates through mini-mills using electric arc furnaces as well as one legacy blast furnace, giving Simec flexibility to shift production based on the relative cost of scrap vs. iron ore. In Mexico, Simec sells rebar and structural steel through roughly 100 independent distributors, while SBQ products — used in automotive and industrial applications like axles, crankshafts, and machine tools — are sold directly to OEMs and industrial customers. Mexico accounted for roughly 54.5% of 2024 sales volume, with Brazil contributing about 45.3%. Brazil operations focus almost entirely on rebar and structural steel for the construction market, with plants running at high utilization. Simec shut down its U.S.-based Republic Steel operations in 2023 due to poor market conditions. Product mix is a key profitability lever — SBQ commands higher margins than commodity rebar — and Simec prioritizes margin over volume. Geographic positioning near the U.S. border and in central Mexico provides freight cost advantages over more distant competitors.