BY IRMA ISIP
[ Malaya.com.ph ] January 7, 2010
Republic Cement Corp., the country’s largest cement firm, reported that it has resumed normal operations.
Renato Sunico, president of Republic Cement, said retail prices of its cement products should be P210 to P215 per 40-kilogram bag in Metro Manila. This was after it raised prices by P3 last December.
The Department of Trade and Industry (DTI) on Tuesday threatened to impose price controls following reports of hoarding and overpricing.
Sunico said deliveries from its plant in Norzagaray, Bulacan, are now back to an average of 20 to 25 trucks a day after completion of maintenance work.
Sunico also said deliveries from its Batangas plant have been normal as well since it started using Mahanadyong bridge in Taisan.
Sunico said they have been using the Mahanadyong bridge instead of the Bridge of Promise because the repair of the latter is taking too long.
"Supply is normal now, it is just a matter of finding out why there is an overpricing of cement at P250 per bag," he said.
Republic Cement has four plants in Luzon. It is owned by Lafarge.
Sunico said Republic Cement is working with the DTI in tracking down traders who are overpricing and hoarding cement.
He added that the company has complied with the DTI’s order to submit the list of its accredited dealers as well as the inventories and prices.
The list was coursed through the Cement Manufacturers Association of the Philippines.
But Sunico said companies can only use moral suasion on their dealers in ensuring fair prices
"Once the cement is out of our gates we don’t have much control on them because we have prices for our dealers and dealers have their separate prices to their retailers," he said.
He added that Republic informed DTI last December 16 of its decision to raise prices by P3.
"We told DTI that retail price should be more than P205 and our cement retail price should range from P210 to P215 per bag in the NCR," he said.
The DTI reported that one retailer was selling at P270 per bag when the suggested retail price has been pegged at P205.
Retail prices jumped to P215 last December 15, P240 last December 20 and P260 last January 4.
While ex-plant prices vary, dealers have a margin of P2 while retailers have P10 to P15.
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