The lack of public and private construction in the Mexican state of Puebla has caused construction prices to drop about 25-30 percent since the beginning of the economic crisis, reported Sergio Curro Martínez, president of the Association of Construction Companies (AECO).
Mr. Curro explained that the materials affected by the lack of activity are steel products such as rebar, as well as asphalt. On the other hand, he also said that cement prices this week increased by 80 pesos per mt but as a result of a readjustment and not an increase in demand.
Mr. Curro stated that steel prices at the beginning of this year averaged 11,500 pesos/mt while asphalt prices were set at 1,800 pesos per square meter, and now steel prices range around 9,500 pesos/mt, and asphalt are about 1,200 pesos per square meter.
A decrease in public resources from the federal state as well as the delay of public works due to the election of federal deputies have caused the construction sector to fall about 20 percent this year in Puebla, Mexico's fifth most populated state, explained Mr. Curro. He also remarked on the fact that due to the reduction of public federal resources to all states, the state of Puebla will stop receiving six billion pesos, from which 1.5 billion pesos had been slated forthe construction sector.
Furthermore, Mr. Curro also pointed out that the lack of construction work has caused 7,000 people in the state to lose their jobs.
On the other hand, Mexican steelmaker AHMSA, with main steelmaking facilities located in the border state of Coahuila, announced this week that it has began a maintenance program, with an investment cost of 151 million pesos, which will generate 2,000 temporary jobs through construction companies. The maintenance work aims to ensure the operational conditions in the production of pig iron, crude steel and its transformation into slab to allow the companies fulfill the orders already booked for the second half of next year.