Peru Metalworkers See 2027 Demand Rebound

Peru’s metalworking companies expect a stronger year in 2027, led by mining projects, bridge building after El Niño and returning US investors, according to their trade body. The group forecasts double-digit growth next year, after only a low single-digit gain in 2026.

For US readers, the story shows how high metal prices and American interest in traditional metals and rare earths may start to reach local suppliers. The forecast comes from an industry association, not from official statistics.

Peru’s steel-structure makers say 2026 was a year of transition and expect more orders in 2027.

A Slow Start Under the New Government

Víctor Lazo, general manager of Aepme, says the sector is concentrated in Lima and Arequipa and has grown at a minimal pace for years. He says the new government that took office in July raised hopes, but the effect was slower than expected.

Lazo credits the transfer of legislative powers to the executive for the first real improvement. He expects projects meant to limit the damage of El Niño, a warming of Pacific waters that brings floods to Peru, to speed up orders.

Where the Orders Should Come From

Lazo points to bridges, roads and tunnels commissioned by regional governments that begin new terms, plus mining projects financed by private companies. He says the main demand will be for all kinds of steel structures, led by bridges for El Niño reconstruction.

Some Peruvian firms also work on projects in Chile, Argentina, Ecuador and Colombia, though Ecuador is complicated for now because of El Niño. Distant markets such as Europe and Asia are uncommon for the sector because of transport costs and regulation.

The Role of Public Spending

Law 32744 authorises supplementary credits of up to S/8,228,414,502 (about US$2.39 billion at 3.44 soles per dollar) for El Niño 2026–2027 actions, infrastructure and security. The money is not all for El Niño, and how much reaches steelwork contracts is not yet clear.

Aepme’s own view is that more projects are already moving because of the El Niño threat. It expects the effect to show mainly from early 2027.

The US Angle

Lazo says metal prices stay high and keep foreign investors interested, now including US companies looking at traditional metals and rare earths. He describes a fairly strong American presence for some time as a change the sector had long awaited.

A few past projects were built in the United States, but the sector mostly serves nearby markets. Exports as a whole already account for 35% to 40% of sales, according to Aepme.

What It Means for You

Investors in Peru’s mining chain can read the forecast as an early signal that suppliers expect more mine and infrastructure work, though it is a trade group’s view. Travellers and expats may see more road and bridge works if El Niño arrives.

More on Peru’s economy is in our Peru coverage and in Salvadoran Business Backs Peru Trade Deal. Both give wider context for this story.

What Is Not Known

There are no official sector figures behind the forecast, and Aepme did not say how large its double-digit growth would be. The timing and strength of El Niño, and of US investment, remain open.

Frequently Asked Questions

How much will Peru’s metalworking sector grow in 2027?

Aepme expects double-digit growth, after a low single-digit gain in 2026. That is an industry forecast, not an official one.

What is driving the expected rebound?

Mining projects, bridge and road works linked to El Niño and new regional governments, says the trade body. It also cites renewed US investor interest.

Sources: Aepme, Asociación de Empresas Privadas Metal Mecánicas del Perú, statements by its general manager Víctor Lazo, 8 November 2026; Law 32744 of Peru’s Congress on supplementary credits (official gazette El Peruano); Ministry of Economy and Finance (mef.gob.pe).