Argentina: In boon to construction, Government pushes to lower prices

The government of Argentine president Mauricio Macri has announced it has reached an agreement to lower by 14% the reference price for aluminum bars, helping to reduce costs for public and private construction projects. The pact was struck with Aluar, the country’s dominant aluminum producer, in exchange for a change in the implementation of tariffs for energy-intensive industries (to be introduced gradually until the Energy market is fully de-regulated as planned.)

The Government announced it will call for a similar agreement with the country’s steelmakers, as well as with various players in the petrochemical sector in order to lower the prices of plastics and other essential resources for construction.

The agreement, signed last week, would see Aluar reducing the price of aluminum bars by 14%, bringing this closer to the price of imported aluminum. The reduction will not only have direct impact on the costs of construction, but is also expected to ripple through other industries such as the car industry, railroad construction, auto-parts, bicycle and railing, among others. The price drop will be monitored by the CNDC, the competition regulation, as well as the National Commission for Foreign Trade.
Full Content: Cronista

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