The value of works in the construction industry, the largest consumer of steel in Mexico, registered a nominal increase (without adjustment for inflation) of 15.5 percent in March, year-over-year. With this increase, 37 consecutive months have accumulated in a positive trend and of them 35 times in double digits, according to SteelOrbis analysis of data from the national statistics agency Inegi.
In real terms (seasonally adjusted data), the annual increase was 17.3 percent. In Mexican currency and considering today's peso-dollar exchange rate, the value of construction industry works in March was the equivalent of $3.27 billion.
Of the 32 states in the country, the value of construction works grew in 19, of which Hidalgo and Guerrero stood out with increases of more than 110 percent, Quintana Roo grew more than 128 percent and Durango advanced more than 164 percent.
The 19 entities with growth contribute 70.8 percent of the total. In contrast, the 13 entities where the value of construction works decreased contributed the remaining 29.2 percent.
In March, the five largest construction economies in the Mexican market were Jalisco with works worth $167 million (5.1 percent of the total), the state of Mexico with $170 million (5.2 percent), Campeche with $243 million (7.4 percent), Nuevo León with $321 million (9.8 percent) and Quintana Roo with $361 million (11.0 percent of the total). Together they contribute 38.6 percent of the total.
According to the National Chamber of the Iron and Steel Industry (Canacero), the construction industry is the largest consumer of steel in the country.
However, the Inegi construction data is not on the path of rebar consumption, which plummeted 36.2 percent in March. Of the 10 most consumed finished steel products, rebar recorded the worst scenario.
Wire rod consumption also decreased 9.9 percent, wire consumption decreased 16.0 percent and steel plate consumption decreased 25.4 percent, year-over-year, according to Canacero data.
In 2023, the construction industry contributed 6.1 percent of Mexico's total GDP ($1.49 trillion), according to data from Mexico's System of National Accounts, reviewed by SteelOrbis.