Mexico's mining production expected to have stagnated in 2022

Mining production in Mexico is estimated to have remained flat in 2022, affected in part by the weakening of construction and the steel industry, according to the head of economics think tank IDIC, José Luis de la Cruz.

After the figures on industrial activity up to November were released by statistics office Inegi on Thursday, the economist projected that metallic and non-metallic mining production shrank 0.7% last year. 

Metallic and non-metallic mining production declined slightly in the second half, which offset growth at the beginning of the year, de la Cruz, a former head of economic studies of the Mexican confederation of industries Concamin, told BNamericas.

During the first 11 months of 2022, metallic and non-metallic mining reported a 0.5% drop. Meanwhile, mining-related services rebounded 11.9% in the period.

"On the one hand, the prices [of some metals] recovered and that benefits producers, but production fell due to two elements: a drop in demand from sectors such as construction, but also due to a certain weakening of the iron in steel industry, which did not have such a good second half,” said de la Cruz.

The mining of metallic and non-metallic minerals was expanding prior to the COVID-19 pandemic but then declined. It recovered during 2021 by 5.2%, but then it stagnated and in the last months of 2022 it began to show a slight downward trend, he said.

Between January and September, foreign direct investment in mining fell almost 56%, according to preliminary data from the economy ministry.