MANILA, Philippines - Cement manufacturers are asking the Department of Trade and Industry (DTI) to partner with them in order to catch unscrupulous traders who are hoarding cement, a move that drives up the prices by as much as P40 per bag.
“We want a joint partnership with the DTI in order to investigate retailers. We want to monitor hardwares to verify if the reports that they are hoarding and over pricing are true,” Cement Manufacturers Association of the Philippines (CEMAP) President told The STAR in a telephone interview.
Ordonez admitted that there was indeed a supply shortage before Christmas but it should have been corrected already because plants that underwent maintenance are already operational.
Besides, Ordonez insisted that the spike in prices should not have been more than P5. “If there were any price adjustments due to supply shortages, the maximum price should only be P210 per bag,” he said.
Ordonez said that a bag of cement costs P205 to P206. He said the delays should only jack up the price by P5 and any price increase above it should be considered profiteering.
Ordonez said that if there is a shortage now, it is because retailers are hoarding cement so that they can sell it at a higher price. He said they are selling cement at P220 to P250 per bag.
“There is plenty of cement in the market. There is no more line in the plants. The supply is back to normal.”
Earlier, it was reported that DTI is investigating the big three cement manufacturers in the country as prices in selected areas went up by as much as P40 and some markets are complaining of shortness in supply.
“We have called the manufacturers to inform them that monitoring reports received from the Regional and Provincial Offices of the DTI in selected areas indicate that the retail price of cement has increased by a range of P10 to P40 over the past week and some of the outlets/ hardware do not sell claiming they have no supply,” Trade and Industry Undersecretary for Consumer Welfare Zenaida C. Maglaya said.
“We are asking for their assessment of the situation in the market,” she added.
In spite of reports from the price monitoring teams, Cemex and Holcim denied that they increased their prices. The two firms said that the last time they adjusted their prices was last year.
On the other hand, Renato Sunico of La Farge Cement, manufacturer of the Republic brand admitted that they raised their price by P3 to cover increase in the cost of their production inputs.
With regards to the tightness in supply at the retail level, the three explained that this was a result of the shut down of their plants because they were conducting annual preventive maintenance.
Cemex closed its plant in Antipolo while Holcim and La Farge shut their plants in Norzagaray Bulacan.