Mexican market contracts 10% in 2019

Cement sales in Mexico declined by around 10 per cent in 2019, according to Standard & Poor’s.

The ratings agency attributed the fall to poor performance of the infrastructure market as the Texcoco airport project was cancelled, the partial suspension of commercial and residential building projects in Mexico City and a drop in the construction of new housing as the federal subsidy was reduced. 

The outlook for 2020 is subdued unless infrastructure investment rises, warns the ratings agency. It predicts that cement sales will remain flat. However, the implementation of the National Infrastructure Plan could provide a rise in offtake and support the cement sector in 2020.