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News National Chamber of Cement

Displaying items by tag: National Chamber of Cement

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US tariffs on Mexico - consequences for the cement industry

05 June 2019

Talk of US tariffs on imports from Mexico was not troubling the National Chamber of Cement (CANACEM) this week. Director general Yanina Navarro pointed out to local media that Mexico only exports 1.42Mt or 3.4% of its total production of 44Mt/yr to its northern neighbour. This is a little higher than the 1.04Mt reported by the United States Geological Survey (USGS) in 2018, although that figure is believed to have underestimated imports to El Paso district in Texas. Mexico was the fifth largest exporter of hydraulic cement and clinker to the US behind Canada, Turkey, China and Greece.

Commentators pointed out that Grupo Cementos de Chihuahua (GCC) might be affected more that other Mexican producers as two of its plants are close to the border at Samalayuca and Juárez in Chihuahua. However, GCC operates five plants in the US. Cemex also has a plant near the US border at Ensenada in Baja California. Yet it’s the fourth largest producer in the US by integrated production capacity. If either company had its export markets seriously disrupted by any border duties they could likely focus on production in the US to compensate.

Once again this is similar to the situation with the proposed border wall where, although President Donald Trump wanted Mexico to pay, it would have been Mexican companies benefiting the most from any construction boom. This was also the case with the US-Mexico-Canada Agreement (USMCA), the successor to the North American Free Trade Agreement (NAFTA). The international structure of many of the larger Mexican cement producers insulates them from these kinds of political and trade disputes.

Mexican producers shouldn’t be too complacent though. Tariffs are likely to play havoc with integrated supply chains as in the car industry. Building materials will probably be affected less so but that 1.42Mt export figure is more than the production capacity of many individual Mexican cement plants. Taking away this export market will drag on the industry’s utilisation rate and alternate destinations may be hard to find. Note the trouble Mexico has had distributing its products in Peru. The Supreme Court there upheld a fine this week on UNACEM for trying to block the distribution of Cemex’s brand of cement in 2014. Also, although Trump’s tariffs on Chinese products may not have much of an impact on building materials, USGS data shows that Chinese imports of cement to the US fell by 27% year-on-year to 0.76Mt in the six months to the end of February 2019. Similar reductions could await Mexico’s exporters.

The general consensus from the free market press is that tariffs will ultimately hurt both economies. In agreement the Portland Cement Association (PCA) published a market report in April 2018 on the effects of tariffs on US cement consumption in the wake of tariffs on steel and aluminium imports from the European Union (EU), Canada and Mexico. The summary was that all forms of tariff – from minor to a global trade war – would likely result in reduced US cement consumption to varying degrees due to slower economic growth. A full-scale set of tariffs on Mexican imports is likely to induce similar consequences.

Published in Analysis
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Mexican cement producers untroubled by US tariffs

03 June 2019

Mexico/US: Yanina Navarro, the general director of the National Chamber of Cement (CANACEM), says that Mexican cement producers are not worried by US tariffs on imports. Mexico exports 1.42Mt or 3.4% of its total production of 44Mt/yr to its neighbour, according to the EL Financiero newspaper. Data from the United States Geological Survey (USGS) placed Mexico at the fifth largest exporter of cement to the US after Canada, Turkey, China and Greece.

Grupo Cementos de Chihuahua (GCC) could be affected more than other Mexican producers by any tariffs as 17% of its production is exported to the US. Mainly this covers production from plants at Samalayuca and Juárez in Chihuahua. Hoevever, GCC operates five plants in the US, which would enable it to reduce the potential negative affects of tariffs.

Published in Global Cement News
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Holcim Mexico wins award for no accidents at its plants in 2018

10 April 2019

Mexico: Holcim Mexico has won an award from the National Chamber of Cement (CANACEM) for reporting no accidents at its cement plants in 2018. The award was presented at CANACEM‘s XXXVI National Congress of Occupational Health and Safety in Chihuahua.

Published in Global Cement News
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Mauricio Doehmer appointed president of Mexico’s National Chamber of Cement

12 April 2017

Mexico: Mauricio Doehmer has been appointed as the president of the National Chamber of Cement. He is Cemex’s corporate affairs and business risk management executive vice-president, according to the El Financiero newspaper. He succeeds Billy Alvarez, an executive with Cementos Cruz Azul.

Published in People
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