Mexico to maintain momentum?
Mexican cement demand reached a turning point in the third quarter of last year and recent statistics appear to be pointing to a material increase in construction activity. The domestic cement industry is now bouncing along nicely thanks to better utilisation and higher pricing, but with new capacity set to enter the market, for how long can this momentum be maintained? By Francisco Suarez & Ramón Obeso, Scotiabank Inverlat SA, Mexico.
After the 2008 financial crisis, Mexican cement production volumes struggled to regain lost ground, only to fall again sharply in 2013 with Mexico’s change in government. However, a turning point was reached in the third quarter of 2014, and, with the industry’s recovery fuelled by all major end-markets, this pick-up is now gaining momentum.