High Demand for Cement in Panama

The construction of megaprojects has caused a high demand for cement and an increase in the prices of the main material for the construction industry.

Friday, August 30, 2013

The fact that only two companies (Argos, and Cemex) lead the Panamanian market has caused prices to skyrocket because they are setting the price of this item. Experts expect that when demand for this raw material decreases, so will prices.

Data from the Authority for Consumer Protection and Competition (acodec) reveals that while a bag of cement weighing 94 pounds cost $5 a decade ago, it now costs $9.42.

"Undoubtedly, prices have risen because of the construction of the Metro and the Canal expansion," said an advisor to the Board of Directors of the Panamanian Society of Engineers and Architects (SPIA), Jose Batista.

According to the president of the Panamanian Chamber of Construction (CAPAC), Enrique Asensio, when there is a high demand for a product the cost tends to rise, as is the case with cement.

This phenomenon has caused developers to produce their own concrete which reduces their costs by up to 20%.

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