Mexico: Construction activity grew by 29% year-on-year during the first half of 2023. Local press has reported that this is its sharpest increase since reporting began in 2006. Major infrastructure projects reportedly drove the growth. These include the Mayan Train, Isthmus Train and Mexico-Toluca Interurban Train railway projects and the Olmeca oil refinery project.

As a result, Cemex and GCCs’ share prices have been the fastest and seventh fastest growing respectively on the main index of the Mexican Stock Exchange.

China: Anhui Conch grew its concrete and aggregate sales in the first half of 2023 to increase overall sales. Its revenue grew by 16% year-on-year to US$8.99bn in the first half of 2023 from US$7.73bn in the same period in 2022. However, its cement and clinker sales fell by 7% to US$6bn from US$6.46bn. Sales revenue fell in all of its domestic sales regions, although they rose overseas. By contrast, sales and trading of other products more than doubled to US$2.7bn. The group’s sales volumes of cement and clinker increased by 3% to 134Mt. Its total profit fell by 32% to US$928m from US$1.37bn.

In its interim results the company said that it had “actively responded to the complicated and difficult industry situation and strived to overcome the impact of unfavourable factors such as declining real estate investment, sluggish market demand and intensified industry competition.”

China: CNBM’s sales from its cement businesses fell by 16% year-on-year to US$6.14bn in the first half of 2023 from US$7.34 in the same period in 2022. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 39% to US$991m from US$1.63bn. The group’s sales volumes of cement and clinker fell by 1% to 127Mt and 15% to 15.4Mt respectively. Sales volumes of concrete decreased by 10% to 35.6Mm3 from 39.5Mm3. Overall the group’s sales fell by 8% to US$14bn and its adjusted EBITDA by 27% to US$2.03bn.

The company said that its building materials division faced weakening demand, high inventory, low prices and declining profits. It noted that industry overcapacity remained high, despite supply-side structural changes, and that although the price of coal was declining it was insufficient to offset the fall in cement prices and profit in turn.

China: Tangshan Jidong Cement’s operating income fell by 14% year-on-year to US$1.99bn in the first half of 2023 from US$2.31bn in the same period in 2022. Its sales volumes of cement and clinker grew by 14% to 44Mt. However, it reported a loss of US$50.7m compared to a profit of US$157m previously. Its operating income fell in all regions domestically except the North-east of the country. The company noted that low cement prices had led to a decline in the profits of the cement sector.