Trade and Industry Secretary Peter B. Favila has confirmed increases in prices of construction materials after he summoned manufacturers to an urgent meeting.

"Market intervention by the government is always open to ensure that stable prices and quality products are available to consumers. We have called on the manufacturers for a transparent and full disclosure of price increases so consumers will have the full benefit of fair and reasonable prices at the retail level," Favila said.

Based on monitoring reports received from the Regional and Provincial Offices of the DTI, the retail price of cement has increased by a range of P2.00 to P5.00.

This is ironic from the Cement Manufacturers Association of the Philippines that cement demand is weak and that consumption even dropped by almost 2 percent last year versus the previous year.

Based on the DTI monitoring report for National Capital Region, LaFarge’s Continental brand was up by P3 to P175 per 40-kilogram bag from only P172 a month ago while Excel of Holcim was up by P4 to P178 from P174.

But prices outside of NCR reached a high of P188 per bag.

The price increase on cement was confirmed in the meeting as Holcim implemented higher ex-plant prices beginning this January, according to its policy of adjusting prices at the beginning of the year to cover increases in the cost of their production inputs including gypsum, coal and ware parts.

LaFarge Cement reported no adjustment of SRP prices from the August 2006 level. Meanwhile, the Cement Manufacturers Association of the Philippines reported that volume of sales last year was slightly lower than the past year.

DTI Undersecretary for Consumer Welfare Zenaida Cuison Maglaya said they are assessing the market situation for construction materials in preparation for the peak of construction activity this summer to guarantee that any issue which can affect the interests of the buying public will be readily acted upon.

Maglaya said that prices of steel bars and flat sheets have remained stable, and outlook for the next six months is positive especially because of the huge demand in summer when most of construction activities take place.

Coming on the heels of the inquiry on prices, the industry asked DTI to ensure strict and continuous monitoring of compliance of construction materials with Philippine National Standards in order to protect the interests of legitimate businesses.

Favila also added that as the country gets the benefit of a more liberal tariff regime, domestic industries are ready to compete against importation for as long as they ensure high quality in their products by conforming to product standards.

"Thus, the Department has constantly held an aggressive stance in the campaign against uncertified and substandard goods, largely in terms of strict market monitoring, partnership with the private sector and broad consumer education initiatives," Favila said.

He added that the DTI will closely work with the Bureau of Customs (BoC), led by Commissioner Napoleon Morales, in ensuring that unsafe goods will not get its way into the market.