Imports Reflect Cement Shortage

Washington, D.C.— Imports of goods rose 16 percent in the first four months of 2005 compared to the same period of 2004, the Commerce Deparment reported today. Imports of stone, sand, cement, etc. jumped 29 percent, reflecting record levels of construction and slow growth of domestic production.

Recently AGC CEO Steve Sandherr wrote to Commerce Secretary Carlos Gutierrez to warn that AGC had heard of shortages in 10 states, some of which had adequate supplies last year, and to seek relief from an anti-dumping duty that has discouraged imports of Mexican cement. Media reports triggered by that letter have documented shortages in many areas. On the same day, the Portland Cement Assn. (PCA) issued a survey that indicated 23 states had "tight conditions" or localized "spot tightness" (www.cement.org ). PCA Chief Economist Ed Sullivan warned, "Market tightness may spread. Fragile market balances prevail in several other areas currently not characterized by tight supplies. Harsh weather conditions earlier in the year depressed construction activity and enabled cement companies to build inventories, staving off current tight supply conditions. As weather conditions improve, the release of pent-up construction demand could further tighten supplies in some regional markets. This is particularly evident for West Coast markets," where PCA did not find tight conditions. In contrast, AGC received multiple reports of shortages in central and eastern Washington, as well as southern Oregon.