PCA confirms prices of construction materials are rising

Philippine Constructors Association (PCA) Executive Director Manolito P. Madrasto confirmed yesterday that prices of cement have gone up to as high as P160 per 40 kilogram (kg) bag while steel prices have also increase by as much as P30 per kg depending on the area.

Madrasto disclosed that steel prices have been increasing yearly, from only P12 per kilogram in 2001 to P14 per kilogram in 2002 and from an average of P24 per kilogram in 2003.

According to Madrasto prices of cement in Metro Manila averaged between P135 to P140 per bag.

But in Central Luzon, Madrasto said, cement prices went up to as high as P150 to P155 per bag as a result of the flood.

Cement prices in Baguio, Madrasto warned, could hit P160 per bag because supplies cannot be brought to the upland city due to unpassable roads.

"Cement prices in Baguio will surely shoot up because construction won’t stop as contractors have to follow a timetable," Madrasto said.

The PCA, Madrasto said, is thus closely monitoring the latest price movements for the last few days of August.

The price of paints have also gone up, Madrasto said, since paints are oil-based.

Fuel prices have increased at least 10 times already this year.

Gravel and sand, Madrasto added, also cost more because the rains affect quarrying activities.

Madrasto said the continuing fuel price increases also results in higher transport cost which construction material dealers tag on to the cost of all construction materials.

The Department of Trade and Industry (DTI) and its attached agency, the Construction Industry Authority of the Philippines (CIAP) insist that prices of cement and other construction materials are "stable".

The DTI assures that it is intensifying its monitoring of price movements of basic commodities.