Cement prices down to P185

MANILA, Philippines - Cement prices are down to an average of P185 to P190 per bag this year when compared to a year ago because the lack of government initiated infrastructure projects have caused a weakening in demand.

Industry sources said that the price of cement has dropped to P185 to P190 per bag from the P220 to P230 per bag mid last year.

The source said that only the private sector is undertaking construction projects as evidenced by the many low cost mass housing condominium projects by property giants like Ayala, SM, Filinvest and others.

The Cement Manufacturers Association of the Philippines (CEMAP) has already requested an audience with the Department of Trade and Industry (DTI) because even road constructions have not started and the summer months are almost over. Construction usually booms during the summer and tapers off in June when the rainy season begins.

Likewise, the CEMAP will raise the issue on mandatory quality testing because the quality of components must be assured.

For the second quarter, the demand must pick up because if it is lower than the first quarter then there will be big problems for the industry.

Earlier, CEMAP reported that cement sales went down 6.7 percent for the first quarter as demand tapered off.

CEMAP president Ernesto M. Ordonez said sales for the first three months of the year was at 3.8 million metric ton. This was lower than the 4.076 million metric ton recorded during the same period a year ago.

Total sales for 2010 stood at 15.5 million metric tons. This was an improvement from 2009 sales of 14.5 million metric tons.

Last year was a banner year for the cement industry given that the previous high for the industry was at 1997when sales were 15.2 million metric tons.

For this year, Ordoñez said sales target is four percent.