"There is no reason for an increase in the price of cement because all the components of cement are internal and fuel has even decreased in price, and they as an industry have preferential prices; that is, they have no reason to increase the price of cement, there is nothing more than a desire to make money," declared engineer Rafael Durán, of SBDS Investments.
SANTO DOMINGO.-As suppliers had announced, cement registered a price increase of around 6% yesterday in distribution stores, so 2022 ends as it began: with increases in construction materials, which for the last two years have barely experienced small respites in their upward climb.
The president of the Dominican Association of Hardware Stores (ASODEFE), Arturo Espinal, indicated that by December of each year, cement producers raise their prices due to plant maintenance and other justifications that are not explained to the public.
Acoprovi, the Association of Housing Builders and Developers, had warned about the suppliers' intention to increase the price of a bag of cement by 30 pesos, expressing concern that the measure will impact the cost of a square meter of construction by about 20%.
The president of the construction industry association, Jorge Montalvo, described the action as "barbaric" last week and pointed out that the announcement was made despite the fact that, according to the latest Central Bank report, construction has fallen from second place in 2021 to 16th place in 2022, with growth of just one percent 1.6 %.
Builders like Rafael Durán claim there is no reason to justify the increase in the product, a pillar in the building process, and that the measure is motivated solely by a desire to obtain capital.
“There is no reason for an increase in the price of cement because all the components of cement are internal and fuel has even decreased, and they as an industry have preferential prices, that is, they have no reason to increase the price of cement, there is nothing more than a desire to make money,” declared engineer Rafael Durán, of SBDS Investments.
As of yesterday, December 14, the price of a bag of gray cement will be around 500 pesos, an increase of between 30 and 40 pesos, depending on the brand of the product.
“The rumors that have been circulating in the sector since last week, that a bag of cement would be sold at a higher price,” Espinal confirmed to Diario Libre.
Other inputs derived from cement, such as concrete, could also reflect the increases, so the construction sector will have to start quoting prices based on the increases applied since yesterday.
Stunted growth
The construction sector was the second fastest growing in the country last year, concluding with an encouraging figure of 23.4%, while this year it has seen only a moderate increase of 1.6%.
A long list of adversities has slowed the rise of one of the sectors that offers the greatest dynamism to the Dominican economy, which seemed to be getting a break in the last two months, amid the suffocating adverse circumstances, given the reduction registered in the price of maritime freight.
Faced with the increase in input costs, the construction sector has had to deal with disagreements and discontent from homebuyers who do not accept the price adjustments made to projects under construction.
The rise in cement prices adds to the bleak outlook.
