With the Commerce Department announcing record new home sales for May and builders in Florida and across many parts of the country reporting difficulties meeting their construction schedules due to a shortage of concrete, the National Association of Home Builders last month reiterated its call to the Administration to eliminate barriers to imports of concrete from Mexico.
A report released last month by the Portland Concrete Association finds evidence of concrete shortages in 23 states.
“The U.S. has long relied on imports of concrete to supplement limited domestic production capacity, and as the economic recovery proceeds, demand for this critical building material continues to grow,” said NAHB Executive Vice President and CEO Jerry Howard.
On May 28 and June 4, NAHB wrote to Commerce Secretary Don Evans to report that builders were experiencing concrete shortages in a number of states. To help ensure that there are adequate domestic supplies, NAHB urged the Administration to eliminate, at least on a temporary basis, the very high anti-dumping duties imposed on imports of Mexican cement.
“Today, as the situation deteriorates, we urge the Administration to take prompt action to help increase supplies and to relieve upward pressure on concrete prices, which have soared in recent months,” said Howard.
In 2003, imports accounted for about 20 percent of U.S. concrete use. Strong demand from China, which produces and uses more than 40 percent of the world’s cement, has resulted in a shortfall of ships to carry products to the U.S. This has led to tightening supplies in some areas of the country.
Mexico is the most logical source for additional imports. A concrete shipment from Asia takes an average of 44 days to get to a U.S. port. In contrast, a shipment from Mexico takes only four days, allowing more flexibility, efficiency and timeliness in delivery to the final end user. Unfortunately, anti-dumping duties of $57 per ton from that country makes this option economically infeasible.