The bulk of the damage caused by late August's Hurricane Katrina concentrated along the Gulf Coast of Louisiana, Mississippi and the western coast of Alabama. Preliminary estimates put property damage estimates in excess of $125 billion.

A limited survey by Concrete Products and Cement Americas of cement and ready mixed producers in markets devastated by Katrina reveals both unprecedented levels of destruction and a resilient group of men and women determined to rebuild their operations and the cities they serve. In addition, the Portland Cement Association, while recognizing the human tragedy involved, published a report assessing the potential impact on U.S. cement markets in the wake of Katrina. Based on available information, the report looks at two main areas of importance: 1) the potential overall impact of Katrina on cement demand and 2) potential cement supply disruptions.

PCA Chief Economist Ed Sullivan, who compiled the report, noted that while six cement plants operate in the hurricane effected area — accounting for 5.8 million metric tons of annual capacity — no hurricane damage was reported to any of them. Two plants shut down their kilns as a precautionary move prior to Katrina's landfall, but were returned online within a few days. For the tri-state hurricane region, the lost production accounts for 0.3% of total supply.

Twenty import terminals operate in the hurricane-effected regions, account for about 4.9 million metric tons of annual throughput. Ten terminals were affected. In most cases, they were shut down because of either power failure or other minor disruptions. Three located in New Orleans received serious water damage, and some on-site stored cement was lost. Sullivan estimates that Katrina reduced annual import throughput by 200,000 metric tons.

Next to Tampa, the port of New Orleans was the nation's busiest cement import terminal. In 2004, 2.6 million metric tons of powder passed through it, accounting for nearly 10% of the nation's total cement imports. Because of issues related to water depths, bridge heights, and equipment associated with the transfer and cleaning of barges being damaged, free flow of traffic on he Mississippi River is not expected to resume for several months. PCA estimates this could cause a disruption of cement import to the tune of 400,000 to 500,000 metric tons. Damage to the regional rail system compounds the problem of moving cement to targeted markets.

Ken Simonson, chief economist for the Associated General Contractors of Americas, said on September 19, at the group's mid-year conference, that he believes construction materials prices will rise at least 10% in 2006, instead of the 6% to 8% he had expected prior to the storm.

As he had done days earlier in another letter to the U.S. Department of Commerce, Simonson used the occasion to reiterate his plea to the Bush Administration to suspend anti-dumping duties on Mexican cement imports. “[As a result of Katrina,] cement shortages are expected to worsen in some of the 32 states that were already experiencing shortages and spread to new states,” he explains. “Cement prices are likely to rise even more steeply than the 12.7% increase that occurred between August 2004 and August 2005.”