Cement shortages in Mendoza cause construction complications

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Argentina: Cement shortages in Mendoza Province in August 2015 and the beginning of September 2015 has caused complications in terms of house building projects, as well as public and private sector works.

The shortage is linked to a 2400t monthly drop in cement production by Holcim Argentina, as some of its plants are not working properly. Meanwhile, plants in San Juan and San Luis, including Avellaneda, Loma Negra and Minetti, have lowered their deliveries, while investments have not been carried out in accordance with demand, according to construction materials producer Hormiserv. Holcim Argentina's operations in Mendoza are expected to return to normal soon.

Many construction projects will not be completed by 3 October 2015 as planned due to cement shortages, whilst the Procrear housing scheme in Mendoza, which should be receiving 300,000m3 of cement, will only receive 100,000m3, causing delays. In addition, concrete producer Palumbo Hormimac is only operating at 25% of its capacity. Retailers like Materiales Cuyo, which have reported shortages, have estimated that cement prices have grown by 8 – 10% in July - August 2015. Materiales Cuyo, which has not received any cement in September 2015, predicts further price increases in September 2015.

Last modified on 16 September 2015

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