The Department of Trade and Industry (DTI) is seeking explanation from the local cement industry in light of spikes on retail prices of cement in some key areas of the country.
Price monitoring reports of the DTI show that prices of cement have been consistently high in Region 12, specifically in Cotabato City, wherein prices range from P280 up to P288 per 40-kilogram (kg) bag.
In the National Capital Region (NCR), prices of cement range from P225 up to P238 per bag while Cebu registered the lowest monitored prices with P222 per bag from January 2016 to March 2016 then slightly dipped to P220 by the last two months of the first semester.
“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 P220.00 per 40-kg bag in Cebu but not for the rest of the regions and provinces,” says Undersecretary Victorio Mario A. Dimagiba of DTI’s Consumer Protection Group.
The DTI asked Holcim Philippines, Inc., Eagle Cement Corporation, Lafarge Republic, Inc., and Cemex Philippines to respond by July 1, 2016 about the prices of their local-selling brands Holcim Excel, Advance, Republic, and Rizal and Apo, respectively.
Same group of local cement producers including cement traders Bojourno Trading, Summit Koncrete Products Corporation, and Cohaco Merchandising & Development Corporation were given until July 13, 2016 to submit their respective responses for the prices of imported cement brands Halong, Thang Long, and Conch.
According to the DTI’s Bureau of Import Services (BIS), total volume of importation of cement reached 1,078,567 metric tons (MT) this year. Following the allegations of undervaluation, the DTI also looked into the freight rates in countries where cement are being imported from. The BIS data reflects that freight cost in Taiwan ranges from USD 18.66-USD 23.58; USD 16.65-USD 20.02 in Vietnam; while USD 10.00-USD 20.00 in China.
In terms of product quality and standards, the DTI ensures that cement being produced locally and those that are imported go through the mandatory product certification scheme of the Bureau of Philippine Standards having been issued with Philippine Standard (PS) and Import Commodity Clearance (ICC) 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,” says Undersecretary Dimagiba. (Charlie S. Dajao, DTI Calabarzon/DTI Consumer Protection Group)
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