The value of metal scrap sales in Mexico by large collection depots decreased 15.6 percent, year-over-year, in real terms (adjusted for inflation), the 19th consecutive annual decline, according to SteelOrbis' analysis of data from the national statistics agency Inegi.
Of the 19 consecutive drops in sales, on 18 occasions they are double digits, of which the smallest drop was in January of last year with 13.8 percent and the most severe fall was in June 2023 with 30.8 percent. The current recessionary period began in July 2022 and until January 2024 there are 19 months with a contraction in sales. It is the worst recessionary period in at least the last 15 years.
In the past there were three other recessionary periods, one of 12 consecutive months that ended in October 2013, another of 13 months that ended in July 2016, and another of 15 months that ended in June 2020.
Throughout last year, the sale of wholesale scrap in the Mexican steel market decreased 24.1 percent, compared to the same period in 2022, the worst percentage contraction in 14 years, only surpassed by the 28.6 percent drop in the same period of 2009.
Inegi’s information corresponds to the trade with wholesale sales of waste materials, which includes the sale of metal scrap, glass, plastic, paper and cardboard, among other reusable waste. The reported drop corresponds to the total activities. Of that total, metal scrap concentrated 68.4 percent of the total sales of said industry.