Bolivian economic downturn leads to pricing war

The economic slowdown in Bolivia is driving cement companies into a pricing war, according to Esmerk Latin American News.

The cost of a 50kg bag of cement has fallen to BOB46 (US$6.66) from BOB75 over the past five years as cement producers vie for market share. Currently, in Santa Cruz, Itacamba sells its cement at BOB44-45/bag while Fancesa’s product is priced at BOB45-46/bag.

Itacamba has multiplied its supply by five after opening a new factory in Yacuses in 2017. Fancesa’s second plant is 55 per cent complete and the company is expected to increase its production to 2Mta following the commissioning of the new unit. However, there have been shutdowns too as Soboce decided to cease production at EMISA in Oruro because its local plant is now outdated when compared with the other manufacturers.

Going forward, pressure is set to rise as state-owned ECEBOL is expected to open two plants in Oruro and Potosi.