Replacement of Canadian, Mexican cement imports to US “difficult”: Consultant

As discussions continue regarding the broader implications of the proposed US tariffs on the global cement market, replacing imports of Canadian and Mexican cement into the country with seaborne alternatives may prove challenging, according to Ad Ligthart, a partner at Cement Distribution Consultants.

"The US cement shortage is structural, and plants can only produce so much. [The] rest has to be imported. Canadian and Mexican cement importers are fully integrated in the US industry and exports from [these countries] largely go via rail and across the Great Lakes through dedicated facilities. [They] are difficult to replace by seaborne imports," Ad Ligthart told S&P Commodity Insights in an interview.

Nevertheless, exporters from countries unaffected by the tariffs anticipate an increase in import demand.

Mexico exports about 2 million mt of cement to the US and Canada around 5 million mt. Most exporters only supply "shortages," because they are heavily integrated into the US market, "they won't find alternative sources," Ligthart said. "Therefore, a tariff on Canadian and Mexican imports will only result in higher cement prices in the US."

Earlier in February, in its fourth quarter results statement for 2024, Mexican cement producer Cemex said it anticipates improved conditions in 2025 for its US business, "supported by underlying demand for infrastructure, as transportation projects under the Infrastructure, Investment and Jobs Act continue to roll out, and the industrial sector, with significant investments in manufacturing projects."

Platts, part of S&P Global Commodity Insights, last assessed the Platts CEMDEX Turkey price, reflecting Ordinary Portland Cement CEM I 42.5R (bulk), at $52/mt FOB Feb. 6.

Commodity Insights launched a pioneering suite of cement and cement clinker price assessments on Jan. 9. The assessments incorporate market data to reflect the value of cement, clinker, and associated freight in the spot market, taking into account bids, offers, trades, and other indicators. They also provide insights into pricing at key cement hubs.