Philippine prices set to rise?

Cement prices in the Philippines are set to rise by PHP10/40kg bag shortly, according to separate advisory statements issued by three domestic producers to local distributors.

Cemex Corp, Lafarge and Eagle Cement have each notified distibutors of the impending rise, the Manila Standard reported yesterday. The daily noted that Cemex’s Rizal cement currently sells for PHP198/bag (US$4.49), while Lafarge Republic’s brand sells at PHP197 and Eagle Cement at PHP193/bag.

The planned price hike is contrary to the Trade Department’s plea to manufacturers to reduce prices based on 50 per cent reduction in fuel prices. The Trade Department and manufacturers have a standing agreement that a manufacturer should inform the agency first before implementing any price adjustment. Trade Undersecretary for consumer welfare and protection, Victorio Mario Dimagiba, told the Manila Standard that his office had not yet received any notice.

Mr Dimagiba said its latest price monitoring report showed that retail prices of cement actually declined, with all cement brands reducing prices in November 2014 from a high of PHP230. The National Price Coordinating Council will meet today to review existing supply and price situation.

Domestic cement producers last year enjoyed robust sales and sustained growth is likely to continue through 2015..Last year sales increased by 8.7 per cent YoY, according to the Cement Manufacturers’ Cement Association of the Philippines (CeMAP). Local market sales reached 21.3Mt compared to 19.6Mt in 2013 underpinned by continuous growth in construction projects. Volumes have have benefited from strong public and private spending. On top of this, some major private-public projects are being implemented.