Cement dealers in Central Mindanao warned

Cement dealers in Central Mindanao warned
Published: 18 May 2006

A cement manufacturer and trade officials have warned cement dealers and retailers in Central Mindanao against jacking up prices due to temporary supply shortage noted in the last few weeks due to repairs in the firm’s plant in Davao City.   Ernesto Paredes, regional sales head of Holcim Philippines, threatened the company will not supply cement to dealers who sell the product beyond the suggested retail price (SRP). "If they would not sell to the consumers the cement at the suggested retail price, we will not give dealers or retailers their orders," he said.  
Michelle Vidamo, analyst for the Department of Trade and Industry (DTI)-South Cotabato, said they monitored two weeks ago that retailers in the area sell the product at P185 per bag, compared with the P180/bag SRP.   Ms Vidamo said cement prices returned to the P180/bag level last week after Holcim delivered nearly 4000 bags.  
Paredes said the company will not implement price increase despite the temporary supply shortage of cement in the region. He said there was a delay of the arrival of raw materials needed in the production, caused by strong waves encountered by vessels along the South China Sea-Celebes Sea Route. 
Cement supply to Central Mindanao used to come from Holcim’s Davao City plant, but because its raw mill silo collapsed late last year, the manufacturer sourced the supply from its Iligan City plant. The Davao City plant was inoperable until late April when its Line 2 was recommissioned. Line 1 has been scrapped and Line 3 is under rehabilitation.  
Paredes assured officials that his company could supply the 70,000 average daily requirement of Central Mindanao.