Mexico’s steel demand was hurt after construction output fell by 29.1pc in July from the same month last year, due to lower demand for specialized infrastructure projects and civil engineering works.
Construction of specialized infrastructure projects fell by 33.6pc in July this year compared to the same month last year, while construction of civil engineering works and new buildings fell by 32.2pc and 24.5pc, respectively, in the same period, the National Statistics Agency (Inegi) said in a statement on September 24.
Contracts for construction industry personnel decreased by 20.3pc, while their hours worked also fell by 19.8pc, Inegi noted.
Mexico’s steel consumption will decrease by 13.4pc to 21.3mn mt in 2020, from 24.6mn mt in 2019, due to lower demand from construction, manufacturing, and automotive industries due to the COVID-19 pandemic, the National Steel Association (Canacero) said on September 23.
The construction and steel industries have been affected since the pandemic began in March with Mexico’s crude steel output falling by 22.6pc to 1.15mn mt in July this year, from 1.48mn mt produced in the same month of 2019, according to the latest World Steel Association data.