Mexico’s construction output dropped by 32.1pc in April compared to a year ago because COVID-19 has resulted in fewer infrastructure projects, which has hurt steel demand.
Construction of civil engineering projects fell by 33.9pc, construction of specialized works decreased by 30.2pc, and construction of new buildings dropped by 30.3pc in April compared the same month the last year, according to the latest data from the National Statistics Agency (Inegi).
Contracts of construction industry personnel decreased by 19.4pc, while their hours worked also dropped by 22.8pc.
The Mexican states of Nuevo León, Jalisco, Guanajuato, and Veracruz, where some of the the largest steelmakers and automotive companies are located, recorded higher levels of public and private construction projects, according to Inegi.
The steel and construction industries have have recorded higher production declines because of the pandemic. Mexico’s crude steel production dropped by 12.1pc on an annual basis to 1.4mn mt in April, according to the latest figures released by the World Steel Association. Crude steel production in April 2019 was 1.6mn 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