DTI tells cement companies: Explain surge in retail prices

The Department of Trade and Industry (DTI) wants local cement producers to explain the recent surge in retail prices of cement in some key areas in the country.

DTI price monitoring reports showed prices of cement have been consistently high in Region XII, specifically in Cotabato City, wherein prices range from P280 up to P288 per 40-kilogram (kg) bag.

In the National Capital Region, DTI said prices of cement range from P225 up to P238 per bag while Cebu registered the lowest monitored prices at P222 per 40-kg bag from January to March 2016, before slightly dipping to P220 over the last two months.

“We sent letters to local cement producers and traders for them to explain the reason behind the disparity in prices. We want to know why cement can be sold for as low as P220 per 40-kg bag in Cebu but not for the rest of the regions and provinces,” Trade Undersecretary Victorio Mario Dimagiba said.

The DTI has asked cement producers including Holcim Philippines Inc., Eagle Cement Corp., Lafarge Republic Inc., and Cemex Philippines to respond about the prices of their local brands Holcim Excel, Advance, Republic, and Rizal and Apo, respectively.

Cement traders such as Bojourno Trading, Summit Koncrete Products Corp., and Cohaco Merchandising & Development Corp. were also requested to submit their respective response for the prices of imported cement brands Halong, Thang Long and Conch.

DTI said total volume of cement imports has so far reached 1.08 million metric tons ( MT) this year.

Following recent reports of technical smuggling by industry groups, the DTI said it has also looked into the freight rates in countries where cement are being imported from.

Based on DTI’s findings, freight cost in Taiwan ranges from $18.66 to $23.58, Vietnam between $16.65 to $20.02, and China between $10 to $20.

In terms of product quality and standards, the DTI ensures cement being produced locally and those imported go through the mandatory product certification scheme of the Bureau of Philippine Standards having been issued with Philippine Standard and Import Commodity Clearance marks.

“We are still waiting for the response from other local cement producers and traders. We will consolidate and review them to come up with concrete actions to take to ensure that prices of cement are kept at reasonable levels. Meanwhile, we will continue to closely monitor the prices of cement to check for any further movement,” Dimagiba said.