Honduras: Chico calls for lower cement prices

The Honduran Chamber of the Construction Industry (Chico) has requested cement producers to revise the price of bagged grey cement.

Cement companies have maintained the price of HNL168.50 (US$8.02) per 42.5kg in Tegucigalpa with variations from one location to another on the back of transport costs.

The monthly economic activity index (IMAE) released by the Central Bank of Honduras reports that construction shrank by eight per cent in October 2014 when compared with a contraction of 4.8 per cent in the equivalent period of 2013. The worsening decline has been partly attributed to higher construction costs.

“They should consider revising the price in line with lower fuel prices to benefit end-users. The same has been suggested to steel rods and those inputs in which the fuel has some impact,” said Silvio Larios. The price of diesel has come down since July 2014 when it trade at HNL90.76/gal and now stands at HNL67.60.

In 2014 the government froze the price of cement to HNL160 for 60 days after cement plants increased it by HNL12 in December 2013. Following negotiations, the companies and the government agreed a 5.4 per cent increase to HNL168.50, a value held since March 2014. The rise was justified by higher power and fleet costs.

Central Bank data show that Honduras’ cement producers manufactured some 30.3m bas in the first 10 months of 2014, slightly lower than the 32m produced in 10M13.