Cemex: contracts and negotiations with Pemex

The cement plants of Cemex in Mexico primarily use petcoke and alternative fuels, according to the company’s own information.

Two 20-year petcoke supply contracts with Pemex‘s Madero refinery expired at the end of September 2022.

The contracts were then replaced by a five-year supply contract awarded in a tender for an estimated 30% of Cemex’s petcoke consumption.

At the end of October 2022, Pemex unilaterally suspended deliveries from the Cadereyta refinery in two additional contracts.

Cemex and Pemex agreed to a new pricing methodology based on the current petcoke market for the remainder of the contract period.

Pemex is now expected to open a bidding process for the Cadereyta refinery in June 2023.

Cemex was also awarded a two-year contract for the Minatitlán refinery in November 2022, which is equivalent to 11% of Cemex’s cement plant consumption.

In general, Cemex has been able to purchase petcoke on the open market when necessary to compensate for any amount not supplied by Pemex.

Cemex

In addition, in 1992, its Mexican operations began using alternative fuels to reduce the consumption of residual fuel oil and natural gas.

These alternative fuels represented 36% of the total fuel consumption for our Mexican cement plant operations in 2022.

At present, Cemex is one of the largest cement companies in the world, based on annual installed cement production capacity.

As of December 31, 2022, the company had 89.2 million tons of annual installed cement production capacity, and its 2022 cement sales volumes were 63.4 million tons.

Cemex estimates that it is one of the world’s largest ready-mix concrete and aggregates companies, with annual sales volumes of 50.1 million cubic meters and 139.2 million metric tons, respectively, in each case, based on its annual sales volumes in 2022.

In 2022, the company traded 11.8 million tons of cementitious and non-cementitious materials, in 92 countries, including 9.6 million tons of cement and clinker and 2.3 million tons of cementitious and other materials.