Rising Prices of Construction Materials

In Panama cement prices increased between 11 and 12% from the first of January, and other materials are also rising.

Monday, January 14, 2013

Capital.com.pa reports that "With the construction boom and the arrival of the dry season, the country’s hardware stores have begun to record price increases in many of its products."

In the case of gray cement, for example, "The companies Cemento Panamá and Cemex announced that as of January 1 their products will increase by 11% and 12%, respectively, and the market is already reflecting these adjustments", said Ricardo Castillo, the sales manager of the hardware store Super Materiales. Since October 2012, he added, "most building materials began to reflect significant increases."

Gaston Regis, director of the Panamanian Chamber of Construction (CAPAC), said: "Cement is not the only product that has increased, because in general building material prices have increased by approximately 7% over the last year," adding "This problem has been recorded in the country more often since 2006."

The fact that demand is growing faster than the available supply, may partly explain this situation. Furthermore, the problem of higher material prices may continue, as according to Regis, "Panama does not produce much of these products and relies on imports and fluctuations in international markets."

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Construction: Cement Costs Rise Due to Taxes

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High Demand for Cement in Panama

August 2013

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.

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.

Panama: Growth in Middle Class Housing

July 2012

Building permits show that construction of vertical housing has reduced its rapid pace of previous years, in favor of low cost housing.

An article in Capital.com reports that the construction has generally increased: "Building permits valued at $1,640.1 million were recorded in Panama City in the first five months of this year which compared to same period of 2011 represents growth of 83.8%.

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