Mexico: cement prices rise 6.7% in 2015

Cement prices in Mexico have risen 6.7 per cent in 2015, according to the National Institute of Statistics and Geography (INEGI). It is the highest price advance recorded since 2008. The increase has been attributed to the strength of the US dollar vs the Mexican peso.

In 2015 Cemex, the largest cement producer in the country, hiked its prices by 10 per cent to protect its margins, a step which was quickly followed by other cement companies. In 2014 Cemex raised its prices by two per cent.

"In recent years, our inputs have been significant increases, while the price of cement has increased below inflation. According to figures from INEGI that we compiled, from 2000 to 2015, the cost of fuel rose 196 per cent, gas 124 per cent and transportation by 101 percent. We have taken steps to reduce our operating costs; however, this has not been sufficient to offset these effects, "said Cemex via email to Mexican business newspaper El Financiero.

Fortaleza, part of Elementia, increased its prices by 13 per cent while Cementos Chihuahua reported a rise in the “middle-digits”.