Holcim expects 3-5% growth in Mexico

The Mexican cement market will expand by 3-5 per cent in 2015, according to a forecast by Holcim México.

Although dollar volatility, lower oil receipts and the decreased government spending may impact negatively on cement consumption, the National Infrastructure Plan (NIP), a dynamic housing sector and higher remittances are expected to boost cement demand this year. In the first half of 2015 the recovery that started in 2H14 is expected to take hold.

"There are conditions to believe that this year will be better than 2014 in terms of demand for cement. However, there are also factors that can affect its behaviour. We will have to proceed with caution, "said Gustavo Gastélum, director of External Relations and Communications, Holcim México.

In the infrastructure segment, which accounts for 30-40 per cent of domestic cement demand, there are three key areas which hold the prospect of triggering growth: communications, energy and water supply. The Mexican government has started projects such as the Mexico-Toluca interurban train and theAtlacomulco Atizapán road, the Veracruz ports, the Chicoasén  power plant and the Santa Maria dam. The beginning of the airport project is a good sign that can certainly contribute to growth, "said added Mr Gastélum.

The housing sector accounts for a further 40 per cent and the growing remittances could help to encourage more housing construction in the year ahead. The remainder of demand is generated by the commercial and industrial building sector, which has also had an active recent months.