Cement to be next shortage in Venezuela

LA Times:

Venezuelan President Hugo Chavez is planning a government takeover of his country's cement industry, his latest effort to impose state control over key sectors of an economy battered by shortages and inflation.

Chavez made the declaration during a televised cabinet meeting late Thursday. He has long accused foreign cement companies of keeping prices high and supplies tight by exporting their products to other countries while Venezuela is suffering a housing shortage.

"We're going to nationalize the cement industry. Enough already!" Chavez said.

The action is a blow to Monterrey, Mexico-based Cemex, the largest producer in Venezuela. Industry companies LaFarge of France and Switzerland's Holcim Ltd. would also be affected.

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H'mmm high prices caused by tight supplies. Chavez response will be lower prices and less supply. The exports were also likely to have been at a higher price than they could get for the cement locally. The man keeps forgetting that he cannot repeal the law of supply and demand.