Mexican cement prices increase

Mexican newspaper Reforma reported that cement prices in the country were increased by about six per cent on 1 September. This is the third price hike in the year which suggests the earlier two have been absorbed by the market.

At 1H15 stage, Holcim reported pricing to be up 5.3 per cent and Cemex noted six per cent growth with a forecast for mid/high single-digit growth. Mexico generated five per cent of proforma EBITDA for LafargeHolcim last year and we expect pricing to be up five per cent (versus cost-inflation of four per cent).