Mexico’s July industrial output growth slows to 0.2pc

: Metals
24/09/12

Mexico's industrial production growth slowed to just 0.2pc in July from the previous month, statistics agency Inegi reported Tuesday, supported by rebounds in construction and non-oil mining.

The monthly gain in industrial output, following a 0.4pc increase in June and a 0.7pc gain in May, marked a fifth month of expansion in the seven months through July.

Seasonally adjusted, construction led major components in July, expanding by 2.6pc over June, with mining expanding by 1.4pc over the previous month.

Oil and gas extraction, however, was down by 0.2pc from the previous month, after 0.5pc growth was reported in June. The segment has now shown contraction in 10 of the last 12 months.

Extraction of other minerals, however, increased by 0.4pc over the prior month, after a 4.6pc decline reported in June. Mining-related services also rebounded, up 14.8pc in July after a 9.7pc contraction in June.

Manufacturing reversed course in July, registering a 0.8pc contraction from the previous month after posting a 2pc expansion in June.

This is largely the result of the auto manufacturing segment posting a monthly contraction of 3.1pc in July after a 5.8pc expansion in June.

The auto segment comprises 24pc of the manufacturing component in Inegi's monthly industrial activity report (Imai), and manufacturing accounts for 63pc of nationwide industrial activity.

Auto output, however, should rebound in August with INEGI reporting Monday that light vehicle production in August was up almost 20pc from July.

Meanwhile, the utilities component — tracking provision of electric power, water and natural gas — contracted for a second consecutive month, down 0.9pc in July after a 0.2pc contraction recorded in June.

Manufacture of products derived from oil or coal expanded for a second month, up 3pc in July on a monthly basis after a 10.6pc jump in June.

Looking ahead, Mexican bank Banorte said, "We believe that the bias for industry in the remainder of the year will be negative, with headwinds for construction and manufacturing."

Some drivers, it said, include: "weakness in US industry; lower base metal prices due to a global economic slowdown, especially in China; the completion of local infrastructure works; and some circumstantial factors that have added volatility within different sectors."

Nevertheless, Banorte's industrial outlook for 2025 and the medium-term remains positive as the major infrastructure projects for the incoming administration get underway.

By James Young

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25/05/22

'Insolvent' Liberty House put into judicial management

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European Parliament adopts carbon border changes

25/05/22

European Parliament adopts carbon border changes

Brussels, 22 May (Argus) — The European Parliament today approved changes to the bloc's carbon border adjustment mechanism (CBAM) that are estimated to exempt 90pc of importers from the measure, linked to the EU emissions trading system (ETS), although a final legal text still needs to be agreed with EU member states. The parliament adopted by a large majority the European Commission's proposal, with a minor amendment to clarify that CBAM covers electricity importers but not power generated "entirely" in the European Economic Area (EEA) countries Iceland, Liechtenstein and Norway and imported to the EU. These countries are covered by the EU ETS. The adopted text also confirms the start date for CBAM certificate sales as 1 February 2027, pushed back from 2026 previously, to "address significant uncertainties related to the year 2026". Parliament said the new de minimis mass threshold of 50t would exempt 90pc of importers from the CBAM. The commission designed the changes to continue to cover the bulk of CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers. Most fertiliser imported to the EU is in the form of bulk shipments, which are well above 50t. Russia earlier this week launched a formal dispute procedure at the World Trade Organisation against CBAM as an "alleged export subsidy". By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican GDP outlook dims on tariffs: IMEF

25/05/21

Mexican GDP outlook dims on tariffs: IMEF

Mexico City, 21 May (Argus) — Mexico's association of finance executives IMEF lowered its 2025 growth forecast for a fourth consecutive month, citing the growing impact of US tariffs on the economy. GDP is now expected to grow just 0.1pc in 2025, according to IMEF's May survey, down from 0.2pc estimates in April, 0.6pc in March and 1pc in February. The number of respondents forecasting a contraction in GDP rose to 16, or 37pc of the sample, from nine in April. While the US has granted some exemptions and discounts for Mexican goods meeting regional content rules, IMEF said the effective tariff rate on Mexican exports remains higher than that for Canada, Brazil, India, Vietnam and others. "We're already seeing the [tariffs'] impacts," said IMEF economic studies director Victor Herrera, adding that May trade data will likely show a sharp drop in Mexican exports to the US. Trade is also being hit by a screwworm outbreak in cattle that led to port closures last week and curtailed beef exports, which account for $1.3bn in annual exports. More automakers could relocate or scale back production in Mexico, Herrera said, after Stellantis confirmed plans to shift some operations to the US and recent reports Nissan may close one or both of its Mexican plants. In response, Mexico this week sent deputy economy minister Luis Rosendo Gutierrez to Tokyo to meet with Mazda, Nissan, Toyota and Honda executives. IMEF cut its 2025 job creation forecast to 200,000 in May from 220,000 in April. Mexico's social security administration IMSS reported only 43,500 new jobs over the past 12 months as of 5 May. Beyond trade, IMEF flagged uncertainty from recent constitutional reforms and the potential for a US tax on remittances as additional risks to growth. The group held its 2025 inflation forecast steady at 3.8pc, despite Mexico's consumer price index rising to 3.93pc in April from 3.80pc in March . IMEF noted concerns about a potential rebound in inflation later this year after the central bank cut its benchmark interest rate by 50 basis points to 9pc on 8 May — the third such cut in 2025. The group now sees the end-2025 rate at 7.75pc, down from 8pc previously. IMEF expects the peso to end the year at Ps20.80/$1, slightly lower than the Ps20.90/$1 forecast in April. The peso recently strengthened to Ps19.34/$1, though Herrera said this reflected dollar weakness more than peso strength. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IEA warns of lithium and copper deficits by 2035

25/05/21

IEA warns of lithium and copper deficits by 2035

London, 21 May (Argus) — The Paris-based IEA has warned that global deficits of copper and lithium by 2035 could be exacerbated in some regions owing to concentration of supply and refining, leading to a potential "Opec moment" for critical minerals. In its new Global Critical Minerals Outlook report, the IEA said lithium could see a 40pc deficit by 2035, even if all current projects proceed, while copper is expected to reach a 30pc deficit by the same year. "Diversification is the watchword for energy security, but the critical minerals world has moved in the opposite direction in recent years, particularly in refining and processing," the report's executive summary said. "The average market share of the top three refining nations of key energy minerals rose from around 82pc in 2020 to 86pc in 2024 as some 90pc of supply growth came from the top single supplier alone: Indonesia for nickel and China for cobalt, graphite and rare earths." In the lithium market, demand tripled from 2020 to 2024, and will triple again by 2035. By then, the electric vehicle (EV) sector will make up 90pc of additional demand while 95pc of future demand growth comes from battery applications: EVs, grid-scale energy storage and battery backup systems, reaching 3.7mn t LCE by 2035. Three countries — Australia, China and Chile — will control up to 69pc of lithium mining by 2030, while China is expected to control 62pc of refining by the same year. "China extracts only 22pc of lithium — but controls 70pc of global refining and 95pc of hard-rock lithium processing," the report said. The copper market is also expected to grow rapidly, supporting the energy transition, but underinvestment and dwindling resource quality will limit supply. Copper demand rises by 30pc by 2040 under the IEA's base-case (STEPS) scenario, up from 27mn t in 2024 to 34mn t by 2040. The IEA predicts a sharp deficit in supply by 2035, up to a 30pc deficit in primary supply. China is expected to dominate refining of copper, responsible for 47pc in 2030. The report said investment of up to $150bn-180bn is needed to keep pace with the global energy transition. "Despite strong copper demand from electrification, the current mine project pipeline points to a potential 30pc supply shortfall by 2035 due to declining ore grades, rising capital costs, limited resource discoveries and long lead times," the report said. By Thomas Kavanagh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: US cleantech firm to start biochar plant in Quebec

25/05/21

Q&A: US cleantech firm to start biochar plant in Quebec

London, 21 May (Argus) — US cleantech manufacturer ONYM is due to commission its first commercial-size biochar plant later this year, supplying steelmaker ArcelorMittal with 15,000 t/yr of biochar, about 36,000 t/yr of dry pyrolysis oil and 10,000 t/yr of wood vinegar for its steel mill in Quebec, Canada, the firm's executive vice-president Mustapha Ouyed told Argus . The project follows the successful trial of an ONYM demonstration plant in La Tuque, Quebec, which produced 1,700 t/yr of biochar, 4,300 t/yr of dry pyrolysis oil and 1,300 t/yr of wood vinegar in 2016-19. 1. What stage is the project with ArcelorMittal currently at and when do you expect to start commissioning biochar production at the plant? Following the collaboration agreement signed with ArcelorMittal Long Products Canada, ONYM is currently producing metallurgy-grade biochar to support qualification testing. The tests will validate biochar performance for potential use in low-carbon steel production. 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Operations validated product quality, reactor stability, and the ability to meet the stringent performance standards required by industrial sectors. 7. How many other projects are you planning, what capacity are they and when will they start operating? ONYM has secured a robust pipeline of projects across North America and internationally, with target processing capacities ranging from 80,000 t/yr to 120,000 t/yr of dry biomass per facility. Several of these projects are scheduled to materialise over the next two to three years, aiming to supply decarbonisation solutions to multiple heavy industries. 8. To which industries and geographies do you plan to supply biochar? Our focus is on heavy industry applications — including steel, cement, and metallurgy — where carbon-neutral materials can displace fossil carbon sources directly. We are also targeting the carbon credit market and emerging opportunities in sustainable agriculture. Our geographic reach prioritises Canada, the US and selective entry into European markets aligned with strong decarbonisation policies. 9. What key challenges and opportunities does ONYM see in the coming years? To accelerate decarbonisation, the availability of high-quality, carbon-negative bioenergies must scale rapidly. At ONYM, we believe it is time to move beyond pilots and prototypes — and build the infrastructure necessary to industrialise circular bioenergy production at scale. We invite industries, governments and biomass suppliers to collaborate with us to expand the volume, reach and climate impact of these essential solutions. By Marta Imarisio Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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