Scarcity of cement in Argentina delays many construction projects

Argentina is facing severe scarcity of cement and it has influenced the construction works in the country, reports Los Andes. Cement prices have increased by 29 percent in month of August 2015.

Holcim Argentina has cut its cement production by half and it has worsened the market situation. The shortfall of cement in Argentina is complicated because the suppliers are not getting cement as Avellaneda (provider located in Mendoza and San Luis), Loma Negra (San Juan cement ) and Minetti (San Luis) also have problems in their factories which due to which they could not supply the bags of cement and bulk cement on time in the market.

The suppliers of cement have changed their condition of sales. Suppliers have started taking advance to ensure quotas. This has led to increase in prices of cement. The estimated prices of cement between July and August, the increase averaged 8 percent  and 10 percent. A bag of 50 kilos of Holcim was being sold at ARS 90 now is sold at ARS 100. While Avellaneda brand of cement, is valued at USD 95 in July to USD 88 in some cases.

The situation is not expected to improve any sooner because the cement companies have not made investments to increase their production capacity. Holcim Argentina is producing 70,000 tons when it's capable to produce 50 thousand tons of cement.