The country’s mining industry will face a slow recovery and the delay in its reopening to ensure the demand for inputs for industries such as the automotive industry, where the supply of Mexican metals is essential, said Intercam analysts.
During the following weeks, companies such as Grupo México must gradually resume their ordinary activities to meet the new level of demand for copper, whose price decreased 15 percent from December last year to date, to the current price of $ 2.37 per pound. , although in March it reached a minimum of $ 2.11, the specialists highlighted.
The mining sector would take time to recover after the closure of activities. Photo: Reforma
Likewise, they considered that in the case of Industrias Peñoles, the volumes of refined metals should begin to normalize for the coming quarters, considering that the price of gold increased 15 percent from December to date, to $ 1,737 an ounce. While silver fell 4 percent to $ 17.2 an ounce as a result of Covid-19.
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For zinc, its recovery will take longer, since the closure of the Francisco I. Madero unit in Morelos, Zacatecas, will have repercussions, although its production will be replaced in the long term with Capela’s production.
Ismael Leija, general secretary of the National Democratic Union of Mining, Metallurgical, Iron and Steel and Related Workers, said that after the contingency, reaching the maximum production level of each plant will take time.
“When the health authorities decreed the gradual reactivation of mining as an essential sector, a collapse was avoided with irreversible damages for the country, even though the economic recovery of the companies in the sector will take a little time to be achieved, it will be slow to reach the level of production maximum of each productive unit “, he pointed out.