Local manufacturer Holcim Philippines Inc may hike prices of its products owing to higher costs of coal, oil and electricity.
Ian Thackwray, Holcim chief operating officer, said that because oil, costs and electricity make up 60 percent of the company’s expenses, the company may have to adjust the prices of its cement.
“There are continuous small price adjustments. It may be necessary to hike prices because of...increase of input cost. In Asia, the most expensive electricity is in the Philippines. Coal and electricity are 60 percent of variable costs," Thackwray said.
The company, meanwhile, expects cement demand to be strong in the first half and then weaken in the second half of 2010.
Demand in the first semester of 2010 may come from the government’s infrastructure projects that would have to be completed. But the election ban will also out a six-month moratorium for new infra projects, dampening demand for cement.
“Historically, that is the case. There is a drop in demand after an election. the most important thing is the first six months of next year. We have to make sure that we have strong supply," Thackwray said.