BIR Spotlights Challenges Faced by Mexican Scrap Metal Recyclers

The drastic fall in global demand coupled with government restrictions led to idling of automobile manufacturers in the country.

SEATTLE (Scrap Monster): The latest report published by the Bureau of International Recycling (BIR) highlights the serious challenges faced by the Mexican metal recyclers, due to prolonged restrictions on businesses imposed by the government.

According to order issued by the Mexican government, all non-essential businesses were ordered to shut operations with immediate effect until end-April this year. However, it was not clarified whether metal consumers and scrap metal yards will fall under “essential” category. As a result, most of the businesses in this sector continued to remain closed for most of the month.

The drastic fall in global demand coupled with government restrictions led to idling of automobile manufacturers in the country. This obviously impacted the operations of secondary aluminium smelters. As per estimates, the country’s secondary aluminium alloy ingot production is likely to drop by almost 90% year-on-year to around 45,000 tons in April this year.

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A number of scrap yards in the country have halted operations temporarily. Others are seen operating at reduced capacities. The ongoing shipping disruptions and shortage of containers have impacted the export trade as well, BIR report noted.

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