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

Mexico’s construction output declined by 18.9pc in January compared to the same month last year, the National Statistics Agency (Inegi) noted citing lower demand for construction of new buildings, civil engineering works, and specialized infrastructure projects.


The weak demand in the construction sector has also hurt the demand for steel, Inegi indicated in a statement on Mar 23. Construction of new buildings fell by 21.4pc in January compared to the same month of 2020, while civil engineering works and specialized infrastructure projects dropped by 16.9pc and 16.3pc, respectively, in the same period.


Construction output in the country has not returned to its pre-pandemic levels and is likely to trend down in the near term according to Julio Santaella, president, Inegi. Contracts for construction industry personnel decreased by 11pc, while their hours worked also fell by 11.9pc.

The construction and steel industries have been affected since the pandemic started. Mexican crude steel production decreased by 

8.3pc to 16.8mn mt in 2020, from 18.3mn mt produced in 2019, according to the latest figures released by the World Steel Association.




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