Bolivia’s Fancesa no longer views Paraguay and Argentina as viable export markets for its products. While the neighbouring countries would have provided an alternative sales route for Bolivia’s oversupply of cement a few years ago, domestic product of these countries is now cheaper and more readily available, said Eduardo Kunstek of Fancesa.
For instance, the recent price decrease in Paraguay sees a 50kg bag of cement sell for PYG39,800 or BOB47 with a further fall to PYG36,000 or BOB46 expected in the second half of this year.
He added that logistics costs would be very high and not allow the Bolivian company to enter the market with a competitive price. Fancesa’s transport costs from its plant in Santa Cruz to the Paraguayan capital of Asunción alone would amount to BOB33, according to Mr Kunstek,.
