Mexico's demand expected to cool down

Cement demand in Mexico is forecast to cool down with the country's major cement producing expecting modest growth in 2024 following the completion of some of the government's key infrastructure projects and a reduction in the infrastructure budget. As a result, domestic cement producers are looking to Europe for alternative sales or prepare for expansion projects in Mexico.

In 2023 construction activity in Mexico advanced by 15.6 per cent, largely driven by 78 per cent growth in civil works, pushing the GDP of the Mexican construction industry to MXN1.6trn (US$92.7bn), a level not seen since 1993, according to BBVA Mexico.

CANACEM, the Mexican cement association, forecasts a moderate two per cent increase in cement consumption to 46.4Mt in 2024 from 45.5Mt in 2023, due to near shoring rends and the final stages of infrastructure projects.

Anticipating the cooling of the domestic market CEMEX has shifted its focus to Europe while Holcim Mexico has announced a US$55m investment to expand its Macuspana unit in Tabasco and acquired two concrete plants in Queretaro.