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Investigation Begins Into Why
Costa Rica Has One of the
Highest Cement Prices
Why does Costa Rica have the
highest prices in cement in most
of the world? The Ministro de
Economía has ordered an
investigation to find out the
cause.
Legislative Deputy and former
presidential candidate for the
PLN, José Miguel Corrales, has
asked a series of interrogating
questions at the Ministro de
Economía about the high price of
cement on the Costa Rican
market.
And according to reports he is
holding, Corrales says that the
price of cement is lower in most
other countries.
Based on a private study done
last February, the cost of a
tonne of cement for general use
marketed by Holcim was us$116
dollars, while in Panama the
same cement was us$112, in
Nicaragua cement by Cemex cost
us$108, in El Salvador cement by
the Cessia velia company cost
us$94 and us$91 in Honduras.
A tonne of cement in the United
States has a price of us$77 and
in Japan and Spain us$78.
In Costa Rica there are only two
cement companies - Holcim and
Cemex - which according to the
February study revealed the two
companies having similar pricing
at the retail level for their
products.
The Ministro de Economía has
referred the case to the
Comisión de Promoción de la
Competencia which will
investigate competition
practices in the marketplace.
Prior to 1998, the price of
cement was set by law. When the
regulation was removed, prices
shot up. In 1997 the price for a
bag of cement was ¢94 colones,
but by 2000 it was already at
¢1.489 colones and in 2003 it
hit ¢2.548 colones. This year
the price for a bag of cement is
¢3.202 colones.
A inquiry into several
construction products companies
revealed that a bag of Holcim
and cemex cement were price the
same or similar with little
variations in the retail prices.
Corrales hopes that with the
opening of the investigation,
the price of cement will again
be regulated.
The Cámara de la Construcción
holds firm that the
concentration of cement in the
hands of a few is a worldwide
phenomenon and says that there
are three companies in the world
that produce 80% of the world
cement consumed.
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