Philippines demand decreased slightly during the first five months of this year, resulting in an oversupply of cement in the local market.
“The latest data showed that the demand for cement went down 0.3 per cent when compared to the same period the previous year,” Cement Manufacturers Association of the Philippines (CEMAP) president Ernesto Ordoñez said.
Due to the slight drop in demand, Ordoñez said the result is an oversupply of cement. “Although there is strong supply and a smaller demand, there is no talks of decreasing the price of cement,” Ordoñez said.
“The individual companies would have to decide that, but I don’t think there will be downward adjustment in prices,” he explained.
In terms of prices, Holcim said the last time they adjusted the price was in April when they increased it by P8 per bag.
Currently, cement retails at P185 to P195 per bag. Holcim said the April adjustment was the first time they increased their price this year.
Although Holcim assured that the price of cement will remain the same until the end of the month, they said there is a possibility that the price will increase because of the price of coal in the world market.
Coal prices have already doubled since the beginning of the year, Holcim said. Holcim said there is a possibility of another price increase but not this month.
Trade Secretary Peter B. Favila said he was assured by the players in the construction industry that there will be no price adjustments until the end of June.
“I spoke with them and they told me that the price of cement and steel will be stable barring any surprises in the world market,” Favila said.