Cement prices stabilizing, says Trade dep't

Cement prices are stabilizing, with several manufacturers having aborted plans to hike prices, while some were being made to explain alleged overcharging, the Trade department said on Tuesday. Cemex Philippines has taken back an announcement to slap a 5 percent increase for its cement products after the Trade department demanded justification, Undersecretary Zenaida C. Maglaya told reporters. Lafarge Philippines, meanwhile, has been ordered to refute a dealer's claim that the manufacturer was selling cement above the P190 government suggested ex-plant price for a 40-kilo bag. "Prices have stabilized and supply has normalized," Maglaya said. The department had at one point issued 150 notices of violation to retailers found selling beyond the reference price. It also threatened to impose a price cap, as consumers seeking to repair storm-damaged homes complained of cement priced as high as P270 a bag, as well as inadequate supply. Later, it consulted manufacturers to gather suggested ex-plant prices to police dealers and retailers. The three manufacturers — Cemex, Lafarge and Holcim Philippines, Inc. — had written the department in early January about plans to hike prices, Maglaya said, forcing the government to have the firms justify the hike. "[But] Cemex took back their 5 percent increase early last week," Maglaya said. Lafarge, meanwhile, has gone ahead with its P2-P3 hike, as did Holcim, for cement delivered in Northern Luzon, she said. The price levels could not be confirmed with the cement companies as of press time. Despite this, Maglaya noted that prevailing prices now match the P205-P210 suggested retail price. The department, she added, was waiting for Lafarge to explain a dealer's claim of overpricing. "It's their word against the receipt," Maglaya said. – Jessica Anne D. Hermosa, BusinessWorld