Mexico’s National Chamber of Cement (Canacem) has attributed the increases in domestic cement prices to the high demand in the domestic market despite that construction players maintain that there are no conditions to justify the increases.

"Cement prices in Mexico are established by the dynamics of supply and demand. The price varies depending on the region and the brand, because of the distances to be travelled, as transport in the country is expensive. We had time that we did not generate an increase in prices, because we stayed below inflation, "said Osmín Rendón, Canacem's CEO.

Between December 2013 and May 2017, cement prices in the Central American country have risen by 54 per cent, according to national statistics office, INEGI. In addition, prices were up 6.93 per cent in the first five months of this year.

Members of the Mexican Chamber of Construction Industry (CMIC) have criticised cement companies for announcing a 12 per cent rise in concrete prices in July. The builders said it will substantially increase the cost of housing.

However, a study by Tecnológico de Monterrey has shown that the impact of cement costs on the cost of building a house is around 5.6 per cent. "We have very little impact on the cost of housing, there are other factors that affect prices such as the terrain, the finishes, the rod and so on," added Mr Rendón.