Local cement manufacturers are raising prices by P5 per 40-kilogram bag since last week as increases in fuel prices have not shown any sign of abating and the peak of the construction season is starting.
Trade and Industry undersecretary for consumer welfare Zenaida C. Maglaya said that based on last Friday’s Price Monitoring report, prices of two brands of cement – Republic (Lafarge) and Rizal (Cemex) increased by P5 from P200 to P205 per bag now.
However, the price of Holcim Philippines Inc. dropped P5 to P195 now from P200 per bag the previous month.
In June last year, Holcim raised its prices by 6% in Luzon or P10 per kilogram bag to P200 per bag.
The local cement industry is dominated by the three global cement firms Lafarge, Cemex and Holcim.
Cost of power and coal accounts for 40 percent of a cement company’s total production expenses. Most of the cement firms source their coal supply from Semirara Coal Corp. but majority of their supplies is imported from Indonesia.
Construction activities are seasonally higher during the summer months, which normally starts early in the year and peaks in May.
Last year, construction activities were fueled by the private sector spending as government did not spend much for infrastructure projects.
The Aquino administration, however, has started accelerating investments and implementation of major infrastructure projects this year.
Government infrastructure projects and private sector investments in property developments, including housing and commercial establishments, are expected to boost demand for construction materials, including cement.
No comments:
Post a Comment