Yguazú Cementos recommences output but shortage remains

Yguazú Cementos recommences output but shortage remains
04 September 2020

Paraguay-based Yguazú Cementos SA has restarted production and while operating at full capacity, the cement shortage in the Latin American country currently persists. The company does not expect a change in the market situation as it is faced with cost overruns and Portland cement imports.

Yguazú Cementos SA reported that it completed the repair of a broken-down transformer, which had caused the plant to halt production. “Our plant is already operating at full capacity. We once again extend our apologies to customers who have been harmed by the events and, at the same time, we thank them for their understanding,” the company said in a statement.

The company supplies around 40 per cent of the domestic market, with INC selling a further 40 per cent and imports accounting for the remaining 20 per cent. The average monthly consumption is between 100,000-110,000 bags.

Paraguay’s Chamber for Construction Materials Distributors (Cadimaco) anticipates the cement shortage will last until the end of the year, resulting in high prices. Moreover, high transport costs, issues with waterway transportation down the Paraguay River, and health and safety regulations in view of the COVID-19 pandemic for shipments arriving from Brazil and Argentina are adding to the challenges faced by the market.

Published under Cement News