Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Mexico’s construction output dropped by 34.2pc in May compared with the same month last year according to the National Statistics Agency (Inegi) data.


The COVID-19 pandemic resulted in fewer civil and specialized infrastructure projects, which, in turn, hurt steel demand, Inegi noted.


Specialized construction fell by 36.1pc in May from the same month last year, while civil construction declined by 35.6pc during the same period. Construction of new buildings dropped by 34.2pc in May compared with the same month last year.


Contracts for construction industry personnel declined by 22.3pc in May, while their hours worked also dropped by 28.8pc in the same month compared to May 2019, Inegi said. This year, at least 100,000 personnel from the construction industry lost their jobs due to the pandemic, Julio Santaella, president at Inegi said.


The steel and construction industries have recorded higher declines in their production due to the pandemic. Mexico’s crude steel production dropped by 21.4pc to 1.1mn mt in June this year compared the same month the prior year, according to the latest World Steel Association data. Crude steel production in June last year reached 1.4mn mt.


Mexico’s crude steel output could fall by 10-15pc this year to 16mn mt, compared to 2019 due to the effects of the COVID-19 pandemic.


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