Cement makers asked to explain price hike

MANILA, Philippines - Local cement makers are being asked by the Department of Trade and Industry (DTI) as to why cement selling prices have risen from a year ago and are above the suggested retail price (SRP).

Trade Undersecretary Zenaida Maglaya cited Holcim Philippines Inc. which has raised its selling price to P218 per bag from P195 last year.

Likewise, Lafarge Republic Inc. which sells the Republic brand and Cemex Philippines Group of Companies which carries the Rizal brand, both hiked their selling price to P220 per bag from P205 and P195 per bag, respectively, Maglaya told reporters following the meeting yesterday of the national price coordinating council.

Eagle Cement Corp., which has committed to sell at lower prices than those prevailing in the market following incentives granted to them for their cement manufacturing operations, is selling at P220 per bag.

The suggested retail price for cement is between P205 and P210 per bag.

Maglaya said Holcim, Lafarge and Cemex must submit their reports within the week.

She said cement makers must notify the DTI of price hikes.

“We have to ask the reason (for the higher prices). It may be that they consumed more coal,” she added.

Coal accounts for about 20 to 25 percent of the cost of making cement.

As for Eagle Cement, Maglaya said the DTI would check at what price it should be selling cement.

Maglaya said the DTI is also sending letters to flour dealers and retailers to find out why selling prices have not declined even as farmgate prices have dropped by P30 to P40.

She said flour is still selling at P920 to P930 per bag in the market.

Trade Secretary Gregory Domingo told reporters yesterday that most prices of goods have been stable.