Paraguay: cement price to fall 15%

Cement prices in Paraguay are forecast to fall 15 per cent and production raised by 18,0000 from its present 47,000 bags after several capital investments by Industria Nacional del Cemento (INC) are completed, according to Jorge Méndez, the cement company’s president.

The largest investment relates to the fuel conversion of the kiln. “At present we are currently in the pre qualification stage of this project and will award the contract at the end of the year. The conversion will reduce costs by more than US$22m,” said Mr Méndez.

In addition, the cement producer has finished the prequalification process relating to the installation of the planned pozzolan dryer. The tender will be awarded on 24 September. The new dryer is expected to save the company more than US$10m after commissioning, which is scheduled for June 2015.

Mr Mendez added that the investments are made to reduce the price of cement to the end-user by 15 per cent. At present, a bag of cement retails at PYG42,000 (US$9.76).