Cemex will increase the price of cement between 12-13 per cent at the beginning of next year, according to the Mexican Association of Independent Concrete Companies (AMCI).

"The Mexican Association of Independent Concrete Companies announced an increase in the price of concrete of 20 per cent as of January 2019; independent concrete producers have reported that Cemex will increase cement prices by approximately 12 per cent, "Citibanamex analysts said.

However, they highlighted that although Cemex reiterated in its official statement its policy of increasing prices in line with the inflation of its inputs, concrete producers have reported that Cemex informed them that the price of their cement, both in bulk and bagged, will rise between 12 and 13 per cent.

Emanuel García Villarreal, president of the AMCI, indicated that the increase in concrete prices was the result of the rising costs of diesel and power as well as of cement, which is foreseen next month.

“While it is encouraging to hear announcements of ambitious price increases for 2019, we remain more cautious in our assumptions of five per cent (zero per cent in dollars) increases for cement and nine per cent (four per cent in dollars) for ready-mix concrete, due to the wide supply within the industry and the modest growth of demand, " Citibanamex added.