Brazil’s current imports of around 400,000 bags of cement is damaging the Paraguayan cement industry, according to Jorge Méndez, CEO of Industria Nacional de Cemento (INC). This represents over a third of monthly cement demand.

"What we're seeing is that cement consumption is virtually unchanged, but a lot of product is entering [Paraguay] from Brazil," he said. Particularly in Alto Paraná it is difficult to sell cement as Brazilian cement is sold at around PYG36,000/bag. While some cement enters the country legally, there is also a significant volume that is smuggled across the border.

The imports have reduced INC sales by around five per cent.