The value of works in the construction industry, the largest consumer of steel in Mexico, registered for the third consecutive month a new historical record in July with MXN 56.82 billion, which at today’s exchange rate is $3.23 billion, according to SteelOrbis analysis of data from the national statistics agency Inegi.
The value of construction works in July represented a nominal increase (without adjustment to eliminate inflation) of 35.1 percent, compared to July of last year. It is the twenty-ninth consecutive annual increase, since March 2021.
The three new historical records contrast with the consumption of rod, wire rod and wire. In the May-July period, the value of construction works increased 23.1 percent, in real terms (discounting the inflationary effect), compared to the same period last year. In that same period, the volume of rebar consumption increased 3.5 percent and the consumption of wire rod and wire decreased 8.8 percent and 19.3 percent, respectively, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero).
Of the 32 states of the country, the value of the works grew in 23, of which Quintana Roo stood out with a real increase of 927 percent and Campeche with an increase of 390 percent. Those 20 states contribute 76.7 percent of the total value.
In contrast, in nine states it decreased, Tabasco stood out with a real reduction of 46.3 percent and Mexico City and Morelos with drops of more than 30 percent. Meanwhile, in Jalisco, Guanajuato and Sinaloa the drop was around 20 percent. These nine entities contribute 23.3 percent of the total value for July.
The accumulated value in the January-July period of construction is MXN 353 billion, which at today’s exchange rate represents $20.02 billion.
In the accumulated until July, the five largest construction economies in the country are Nuevo León (7.9 percent of the total), Quintana Roo (7.8 percent), Jalisco (7.5 percent), Campeche (6.4 percent) and Tabasco (5.9 percent). Together they contribute 35.5 percent of the total.
The construction industry contributes 6.0 percent of Mexico’s total GDP ($1.59 trillion). SteelOrbis recently published a report from Canacero that shows that 54.5 percent of steel consumption in Mexico is carried out in activities related to the private and public construction industry with civil engineering works, building (residential and non-residential) that consume wire, rod, commercial profiles, beams, nails, wire rod, sheet, plate, structural profiles, tubes among other finished steel products.
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