Skip to main content

Asphalt shortage in Mexico delaying road building?

Mexico’s road building programme could be hit hard by insufficient asphalt supplies. Both construction companies and asphalt distributors have warned that the country is suffering a 20% shortage of the material. The shortage began to bite in November 2013 and is due in part to insufficient supplies from state-run oil company Petroleos Mexicanos (Pemex). This could delay road maintenance projects by up to 30%. Asphalt represents up to 60% of the value of such projects, according to national asphalt associati
March 28, 2014 Read time: 2 mins
Mexico’s road building programme could be hit hard by insufficient asphalt supplies. Both construction companies and asphalt distributors have warned that the country is suffering a 20% shortage of the material. The shortage began to bite in November 2013 and is due in part to insufficient supplies from state-run oil company Petroleos Mexicanos (Pemex). This could delay road maintenance projects by up to 30%. Asphalt represents up to 60% of the value of such projects, according to national asphalt association AMAAC and construction sector chamber CMIC, so the shortage is a significant issue.

Both organisations have warned that the 2014 road project agenda, 27% larger than the 2013 programme, will be affected by the asphalt shortage. However Pemex has justified the shortage saying it is producing a higher quality product, and has assured AMAAC that supplies will be back to 100% in a couple of months to satisfy Mexico's 2 million tonne/year demand. In the mean-time, CMIC has asked Pemex to increase its asphalt production in response to the problem. Another reason for the shortage is down to higher demand than usual, because production at the Salamanca refinery in Guanajuato is 40% higher than projected. In February 2014, daily asphalt sales were 104% higher than in the year-ago period. Several major road projects have started recently, which has been a factor in the current situation. The Secretariat of Communications and Transportation (SCT) alone has a budget for road projects in 2014 which is 27% larger than in 2013.

Related Content

  • Great opportunities in Asia, conference goers are told
    January 23, 2014
    Asia’s emerging economies will be building roads for the next two decades, delegates at a recent Argus Asian Bitumen conference in Singapore heard. That means there are big opportunities for suppliers of bitumen, related technology and risk management companies - Kristina Smith reports One of the strongest messages to emerge from the Argus Asian Bitumen conference held in Singapore earlier this year is the sheer volume of road building planned in the region. For many countries there are political and finan
  • Futureproofing UK construction equipment resilience
    May 5, 2021
    Rob Oliver is the longstanding CEO of the Construction Equipment Association (CEA), the UK trade association for the UK construction equipment industry. Guy Woodford recently caught up with him to discuss the industry’s health and the key issues facing the CEA and its members in 2021 and beyond.
  • Russian road-building industry on verge of massive cuts
    June 10, 2015
    Russia’s road building programme looks set to be cut due to economic issues - Eugene Gerden writes The Russian Government is considering a significant cut to the existing road building programme for the current year. This is due to a current economic crisis in the country, caused by Western sanctions as well as a collapse in the price of oil and gas.
  • European equipment sales up 15% in 2017, according to the CECE
    June 15, 2018
    European construction sales grew by 15% in 2017, according to the Annual Economic Report 2018* from the CECE After a strong first quarter, growth slowed in Q2, before rising in Q3 and Q4, according to the CECE - Committee for European Construction Equipment. Current levels of sales are on par with the levels seen in 2006 and 2008, but the industry is still 20% below the 2007 peak.