Buying House warns expanded cement quota still insufficient for Melissa rebuild

Buying House Company Limited is cautioning that the Government's recent move to widen its cement import quota will not stretch far enough to keep the local market steady through the latter half of the year, as Jamaica's construction sector ramps up Hurricane Melissa recovery works.

Speaking on Friday, company director Mark Hart explained that the immediate concern is bridging supply through July, but said a much larger allocation will be needed once that window closes. "We are only looking to close the first six months up to July. It won't be that much, but the next period will require a larger quota to keep the market stable," he said.

Hart, who also chairs Cargo Handlers Ltd — holder of a 30 per cent share in Buying House — runs an operation that brings in cement from the Dominican Republic and competes with Caribbean Cement Company, the island's only domestic manufacturer.

His remarks followed an announcement a day earlier by the Ministry of Industry, Investment and Commerce, headed by Senator Aubyn Hill, which rolled out emergency steps to address a cement shortfall caused by heavy rains that interrupted output at Caribbean Cement's Rockfort plant in Kingston. The ministry signed off on an extra import allocation for Buying House to fill the immediate gap, especially across Western Jamaica. Caribbean Cement, for its part, has rerouted a shipment originally headed for the Bahamas, with arrival expected Saturday, April 25, and a further 28,400 tonnes earmarked for early May.

Buying House contends, however, that the issue extends well beyond the weather. Its yearly import allowance was lifted from 120,000 tonnes to 150,000 tonnes in 2024, but Hart says even the bigger figure will be used up long before December once demand from housing, road projects, hospitals, hotel developments and Melissa reconstruction comes together. "At 120,000 tonnes, it is not enough to supply all the growth," he said.

Minister Hill cast the Government's response within the wider rebuilding push. "We recognise the importance of maintaining stability in cement supply, particularly at a time when construction remains a key reliever of the pain of the devastation brought by Hurricane Melissa," he said. "The ministry has acted to ensure that any short-term disruptions are mitigated so that builders, developers, and investors can continue their work with confidence."

Knock-on effects from the Caribbean Cement slowdown are already reaching downstream players. Jamaica Pre-Mix Concrete Ltd, a sizeable supplier to the building trade, has flagged that its ability to fulfil concrete orders has been hampered, according to statements seen by the Financial Gleaner. "We are suffering from a chronic shortage of cement," the company stated.

Hart maintains that Buying House serves as a balancing force in the market — having entered 15 years ago when the leading supplier was grappling with product quality concerns — and warns that without a meaningful quota lift before the second half, building projects could stall and contractors may see their margins squeezed further.

Caribbean Cement, listed on the Jamaica Stock Exchange, is majority held by Mexican building materials firm Cemex. Last year the company brought a larger plant online after a US$42-million, three-year investment that pushed yearly production capacity from 1.0 million tonnes past the 1.3-million-tonne mark. In its year-end results, management indicated that the upgrade had reinforced its capacity to meet local demand despite the fallout from Hurricane Melissa.

The ministry said it would keep watching the situation and continue working with industry stakeholders to keep the market operating smoothly.