The aluminum supply chain in Mexico is undergoing changes

Tariff adjustments in North America, global geopolitical tensions, and changes in international supply have reshaped the primary aluminum supply chain in Mexico over the past cycle. Although industrial demand stalled several times in spot market trading, benchmark prices rose to record levels, reflecting a marked dichotomy between local manufacturing and the global metal market.

During his appearance at the Aluméxico Summit & Expo, Samuel Burleigh, an analyst at the market intelligence firm Platts, noted that the Mexican market has gone through a period of high volatility due to the implementation of U.S. tariff measures and uncertainty surrounding international raw material flows.

However, despite weak domestic demand, international prices for primary aluminum rose sharply due to the geopolitical context. The armed conflict has disrupted production centers linked to Iran, affecting global maritime logistics and creating supply tensions that were reflected in market prices.

For Mexico, “Platts’ CIF Mexico benchmark rose from averages of $300 per metric ton in the previous cycle to levels of $400 at the start of the period. Between April and June, the market saw spot offers that peaked at up to $600 at the port of Veracruz, with an official maximum price assessed by Platts of nearly $560 per metric ton,” the analyst noted, adding that these levels doubled last year’s benchmark and highlighting the impact of freight costs and global risk premiums on supplies entering via the Gulf of Mexico.

This situation has accelerated the structural shift in the sources of aluminum imports that supply the Mexican industry.

According to an analysis presented by Platts, countries such as South Africa, the United Arab Emirates, Canada, and Australia have established themselves as the main suppliers of raw materials to Mexican ports.