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Mexico industrial output rebounds in June
Mexico industrial output rebounds in June
Mexico City, 11 August (Argus) — Mexico's industrial production expanded by 0.2pc in June from the previous month, marking gains in two of the second quarter's three months as construction showed signs of a tentative recovery. The June increase in Mexico's industrial activity indicator (IMAI), reported Tuesday by statistics agency Inegi, followed a revised 0.7pc contraction in May and a 2.1pc expansion in April. Industrial activity posted a cumulative net increase of 1.6pc over the second quarter. The June result matched the consensus forecast cited by Mexican bank Banorte. Construction, which accounts for 19pc of the IMAI, expanded by 3pc in June, rebounding from a 3.7pc decline in May after a 7pc increase in April. Within the sector, building construction rose by 4.8pc in June after falling 5.5pc in May. Civil engineering fell by 2.7pc, reversing a 4.5pc May increase. Weakness remained concentrated in manufacturing, which declined by 0.6pc in June after a 0.1pc drop in May and a 1.1pc increase in April. Ten of 21 manufacturing subsectors contracted in June. The heavily weighted transport equipment segment fell 3.2pc in June, its first decline since January and the steepest since July 2025. Machinery and equipment output fell by 1.4pc after a 3.1pc May increase, while electronic equipment expanded by 0.5pc after declining 0.1pc. Mining expanded by 0.6pc in June, led by a 10.5pc increase in related services, with the oil component also positive at 0.2pc. This follows 0.3pc expansion in May and a 0.2pc decline in April. Generation, transmission and distribution of electricity, natural gas and water rose by 0.9pc in June, marking its first monthly expansion of 2026 after contraction of 0.4pc in May. Industrial production returned to positive territory in annual terms, expanding 1.7pc in June from a year prior, with all four sectors posting increases. Mining was the top performer, rising 6.6pc, followed by construction at 5pc. Utilities rose by an annual 0.7pc, with manufacturing edging 0.1pc higher. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US tungsten scrap export curbs raise concern
US tungsten scrap export curbs raise concern
Houston, 10 August (Argus) — Tungsten market participants seek clarity on the reach and implementation of US export controls on tungsten waste and scrap, warning that limited domestic processing capacity could constrain the policy's near-term impact and cause oversupply. The US Bureau of Industry and Security (BIS), an agency within the Department of Commerce, announced last week that it will require domestic sellers of tungsten waste and scrap to allocate 100pc of their monthly sales to US buyers for a one-year period starting on 27 August. The order also restricts black mass exports. The upcoming restrictions on tungsten scrap exports are intended to keep more tungsten-bearing material in the US and encourage the development of additional processing capacity in the country. But market participants say limited domestic refining capacity will constrain the measure's near-term impact, as the US lacks sufficient capability to convert scrap into intermediate and finished tungsten products at scale. Many tungsten scrap dealers rely heavily on export markets, particularly in Asia. US exports of tungsten waste and scrap totaled 2,183 metric tonnes (t) from January-June 2026, nearly surpassing exports for the entirety of 2025 at 2,202t. Japan, Germany and South Korea were the largest recipients of US exports over that period. As a result, several tungsten carbide scrap exporters warned of near-term oversupply in the US market, as material that would otherwise be exported may have limited domestic outlets. "This is a death sentence for exporters," one trader told Argus . A second exporter said the new requirements will fundamentally "change the way we do carbide business", having to adjust strategy over the next year. Carbide scrap buying further slows ahead of controls Market participants broadly expect tungsten carbide scrap prices to come under further pressure in the near term as more material remains in the domestic market. For now, buyers and sellers have largely adopted a wait-and-see approach while they assess how the restrictions will be implemented. Only a few exporters reported spot purchases for small volumes under 10,000lbs last week to fulfill current orders before the controls take effect, while avoiding any additional orders. As a result, market participants broadly anticipate that tungsten carbide scrap prices will decline in the coming weeks. Argus last assessed US tungsten carbide inserts and rounds prices at $28-34/lb fob US processor on 31 July, their lowest levels of 2026. Prices decreased 13pc and 12pc, respectively, month over month as most large processors maintained adequate supply for the next few months while operating near maximum processing capacity, limiting purchasing requirements. Some exceptions expected The ruling effectively establishes export controls on tungsten waste and scrap, although companies may request adjustments or exceptions on a rolling basis. Multiple sellers expect export waivers to be granted primarily for material sent overseas for processing and refining with intentions to return tungsten units to the US. Several sources described the measure as more of a control mechanism than a complete export ban, with exemptions expected to be granted provided sufficient material remains available for US defense requirements. While defense demand for tungsten is expected to grow the sector accounts for only around 10pc of global consumption, according to 2025 estimates from Argus Tungsten Analytics , with automotive remaining the largest source of demand. The US Defense Logistics Agency recently sought information on the potential future acquisition of up to 200t of tungsten hard scrap, publishing a request for information (RFI) on 27 July. The RFI does not guarantee that the DLA will issue a tender; rather, it is intended solely for information-gathering and planning purposes. Market participants said waivers may be necessary until additional domestic processing capacity comes online. "With this measure, the US administration is working to foster the growth of processing capacity within the country. The interesting question will be whether funding from the Department of Defense or Department of Energy will be directed toward plant expansions or increasing capabilities within US industry, much as they have done in the rare earths, antimony and tin sectors," Joseph Miller, director at mining company Mission Critical Metals, said. Any new processing capacity could take years to develop, he added, and, for now, existing processors are expected to expand their capabilities rather than new entrants building significant new capacity. By Reagan Patrowicz and Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Mexico’s inflation slows to 6-year low in July
Mexico’s inflation slows to 6-year low in July
Mexico City, 7 August (Argus) — Mexico's inflation slowed to an annual 3.12pc in July, the lowest in six years, led by contracting agriculture prices and easing in core inflation. The consumer price index (CPI) eased from an annual 3.37pc in June and marked a fourth consecutive month of deceleration from 4.59pc in March, according to statistics agency Inegi. Inflation came in close to analyst forecasts, with Mexican bank Banorte's consensus survey forecast at 3.11pc. The bank said inflation, its lowest since early 2020, "has likely already" hit its lows for the year and forecasts it to accelerate in the fourth quarter. July's slower headline rate was mainly fueled by the more volatile non-core index of prices, which slowed to an annual 0.29pc in July, mainly because agricultural goods prices contracted by an annual 3.34pc in July. Agricultural prices in Mexico have been supported by average rain and temperatures this year. However, in its August 3 update, NOAA's Climate Prediction Center confirmed the development of a strong El Nino climate phenomenon to reach its peak in the winter. Core inflation, which excludes volatile food and energy prices, slowed to 3.95pc in July from 4.03pc in June, marking a sixth consecutive month of deceleration and slowing to within the central bank's 2-4pc inflation tolerance band around the fixed 3pc target rate. Services remained the main source of upward pressure at 4.36pc in July, though easing from 4.49pc in June. Housing inflation held unchanged at 3.62pc, its highest level since April 2025, while consumer goods inflation slowed to 3.52pc in July, marking a third month of declines. Mexico's energy price index edged lower to 1.16pc in July from 1.39pc in June, supported by the government caps on regular gasoline and diesel retail prices to mitigate volatility stemming from the US war with Iran. The government policy will remain key to stability in energy prices, said Banorte, though the outlook for fuel prices has improved "in recent trading" helped in part by OPEC+'s decision to rescind voluntary production cuts. On a monthly basis, the CPI increased 0.03pc in July after a 0.27pc contraction in June. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US sheds 23,000 jobs in July, revisions lower
US sheds 23,000 jobs in July, revisions lower
Houston, 7 August (Argus) — The US unexpectedly shed jobs in July and revisions halved gains in the prior two months, suggesting the labor market is weakening in the face of uncertainty spawned by rising energy costs linked to the Mideast Gulf war. The US unexpectedly lost 23,000 non-farm jobs in July, the Labor Department reported. That compared with a median average of about 80,000 job gains expected by economists surveyed by Trading Economics. Job gains in June were revised down to 20,000 from an initially reported 57,000, with May revised lower to 63,000 from an initially reported 129,000, for combined downward revisions of 103,000. "Looking ahead, we expect businesses to remain cautious about hiring in response to higher energy prices and uncertainty about how AI will affect staffing needs," Pantheon Macroeconomics said in a note. Total nonfarm employment averaged growth of 34,000/month for the 12 months prior to July. Average hourly earnings increased by 3.2pc in the 12 months to July, slowing from 3.4pc in June. The unemployment rate ticked lower to 4.1pc in July, the lowest since June last year, from 4.2pc the prior month. Retail trade lost 19,000 jobs in July, including 5,000 losses at gasoline stations and fuel dealers. Financial activities lost 14,000 jobs, and is down by 121,000 since a recent peak in May 2025. Health care added 22,000 jobs. Government jobs lost 53,000, partly reflecting lost teaching jobs as the school year ended. Following the report, odds of a quarter point Fed rate increase at the September meeting fell to 44pc in the CME's FedWatch tool from 55pc the prior day. The Fed has signaled it might hike rates to bring down inflation but signs of mounting labor market weakness could prompt it to hold longer. The report "is another nudge for the Fed to keep policy on hold for an extended period as inflation stemming from higher oil prices, tariffs and the AI buildout fades," Oxford Economics said in a note. Manufacturing added 5,000 jobs while construction added 22,000 jobs. Mining and logging shed 2,000 jobs. Transportation and warehousing added 9,700. Leisure and hospitality lost 40,000. The labor force participation rate, which tracks those employed and those actively seeking work, ticked lower to 61.4pc, the lowest since the Covid pandemic. The lower rate reflects rising retirements and discouraged workers. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.