Holcim Cement raises price by P10/bag

MANILA, Philippines - Holcim Philippines Inc. announced they have increased their price by six percent or P10 per bag due to the continued rise in coal prices.

In a press statement, the company said this is the first time they are adjusting their price since October. The firm did not report any price adjustment in Visayas and Mindanao because of the different market conditions.

Holcim refused to answer questions regarding the demand for the first half of the year but latest available figure showed a decline. The firm, likewise, did not answer why they chose to increase their price during the rainy season when demand is usually down because of a slowdown in construction activity.

The Cement Manufacturers Association of the Philippines (CEMAP) has already requested an audience with the Department of Trade and Industry (DTI) to raise the issue on mandatory quality testing because the quality of components must be assured.

Earlier, CEMAP reported that cement sales went down 6.7 percent for the first quarter as demand tapered off. 

CEMAP president Ernesto M. Ordonez said sales for the first three months of the year was at 3.8 million metric tons. This was lower than the 4.076 million metric tons recorded during the same period a year ago.

Total sales for 2010 were at 15.5 million metric tons. This was an improvement from 2009 sales of 14.5 million metric tons.

Last year was a banner year for the cement industry given that the previous high for the industry was at 1997when sales were 15.2 million metric tons.

For this year, Ordonez said sales target is four percent because he said the performance in the coming quarters might improve.

He said the capacity utilization for plants is still at 60 to 65 percent.