Cement-maker Holcim Philippines, Inc. has raised by 6 percent, or roughly P10, the price of its 4-kilogram bag of cement in Luzon. The firm cited in a statement Wednesday costlier coal, used as fuel of its factories, as the reason for the increase.
The increase comes as the National Statistics Office (NSO) monitored a 3.4 percent increase in the average cost per floor area of construction activities last quarter.
The higher price, Holcim said, “is still within the suggested retail price submitted to the Department of Trade Industry (DTI) in July 2010." Its previous increase was last October.
According the DTI, a 4-kg bag of Holcim Excel cement sells for P205. The Holcim-Excel brand is one of five major cement brands covered by DTI price monitoring.
Holcim said it “held off any price increases since last year to help the public cope with rising prices caused by the volatility of oil and other commodities.
For its cement sold in the Visayas and Mindanao, Holcim said the price adjustments will depend on local market conditions.
Last March, the DTI met with cement producers and asked them explain why they wanted to raise cement prices. The DTI monitored price increases for the Republic and Rizal cement brands.
Holcim produces about 7.7 million metric tons of cement a year. It has four production plants — one each in La Union, Bulacan, Misamis Oriental and Davao.
The NSO said P52.77 billion worth of construction works were done from January to March this year. Its data showed an 11.3 percent increase in the cost of duplexes and a 30.4 percent increase in the cost of agricultural construction projects.
The NSO also monitored a 28.8 percent jump in the cost of institutional projects.
While project costs are rising, the NSO also said prices of construction materials have been flat, with cement prices even posting a 2.2 percent decrease. — Earl Rosero/VS
