Holcim Philippines to hike prices

Holcim Philippines to hike prices
14 June 2010

Holcim Philippines, one of the country’s leading cement producers, has notified for a P5 to P8 price increase per bag of cement in Metro Manila and south Luzon effective June 21 this year due to high cost of power in Mindanao and fuel cost.
Eduardo Sahagun, Senior Vice President for Sales, Marketing, Distribution and Technical Services, said its suggested retail prices of cement in Metro Manila and south Luzon by June 21 would be P217 per 40kg bag. Prevailing retail cement prices range from P213 to P216 per bag.
Sahagun said that power cost in Mindanao has increased by 42 per cent due to the power problem in the area while fuel cost has gone up by 20 per cent since January this year.
The price adjustment is to recover general inflationary increases of cost inputs plus higher logistics cost to augment supply in the said areas.
Earlier, the DTI has granted the request of Republic Cement (Lafarge Cement) for price adjustment because of the higher cost to produce cement from its Mindanao plants.
Sahagun said that DTI is going to give its feedback in two weeks, but said they really do not need the blessing from the DTI for its decision to raise prices as long as they have properly informed or notified DTI of its decision.
Sahagun said this is the first time in 20 months that they raised prices in Metro Manila and south Luzon and perhaps, the only this year. The company though had increased prices of cement for Mindanao early this year.
DTI undersecretary for consumer welfare Zenaida C. Maglaya said that one of the factors that may affect its decision to grant the request of Holcim for price adjustment is that construction activities are going to taper off with the onset of the rainy season.
Published under Cement News