DTI to monitor prices of cement

STACKED. The Department of Trade and Industry has asked cement manufacturers to submit an inventory of their stocks. The agency will be monitoring the prices and supply of cement following the suspension of mining and quarrying activities. (SunStar photo/Arni Aclao)
STACKED. The Department of Trade and Industry has asked cement manufacturers to submit an inventory of their stocks. The agency will be monitoring the prices and supply of cement following the suspension of mining and quarrying activities. (SunStar photo/Arni Aclao)

THE Department of Trade and Industry (DTI) 7 said it is monitoring the cement prices in the market following the temporary suspension of quarrying activities in the province and select regions in the country after a fatal landslide in the City of Naga, Cebu last week.

“We are now monitoring the prices. Should the suspension linger, it will create a gap in the supply,” said DTI 7 Director Asteria Caberte.

They have asked cement manufacturers in Cebu to submit their current inventory.

She assured the public that they are closely monitoring the prices to guard consumers against unreasonable price increases.

But she warned that if the suspension is extended, it will create a tight supply situation, posing a challenge to the government’s massive Build, Build, Build program and other private-led construction projects.

“We are just hoping that the suspension will not last long,” she said.

According to Caberte, the Cebu Contractors Association Inc. has reached out to the DTI through a letter addressed to DTI Secretary Ramon Lopez asking the cabinet official to closely monitor the price and supply situation of cement.

Local business owners said there is an average of three to four months’ holding inventory of cement being observed by retailers and producers.

However, should the suspension prevail and exceed the four-month time frame, supply will be affected and they fear prices of cement will go up.

“The suspension can’t be hanging; otherwise it will affect supply and then prices. What we don’t want to see is people taking advantage of the situation. The government must act fast and must look into the impact of this suspension,” said Mandaue Chamber of Commerce and Industry president Stanley Go.

Cemex Holdings Philippines (CHP) yesterday said it is assessing the impact of the quarrying suspension on the production output of its subsidiary Apo Cement Corp.

“CHP is now conducting assessment on the effects of the cease and desist order on the raw materials sourced from Naga City and consequently, on the production of Apo Cement Corp.,” the company’s disclosure said.

“CHP is also considering, at this time, alternative measures to address the situation,” it added.

Apo Land and Quarry Corp (ALQC) is one of the principal suppliers of Apo Cement Corp.

Following the fatal incident, Environment Secretary Roy Cimatu suspended the environmental compliance certificate of ALQC for 15 days, or until it can comply with an assessment of its mitigating measures.

He also suspended quarrying in Ilocos, Cagayan Valley, Calabarzon, Bicol, Central Visayas, Northern Mindanao, Davao Region and Caraga.

The Cement Manufacturers’ Association of the Philippines (Cemap) also expressed concern over the suspension of quarrying and mining operations, saying their member companies have not received official orders from the Department of Environment and Natural Resources or the Mines and Geosciences Bureau.

“Cemap and its member-companies are continually committed to the welfare of the environment and the health and safety of our stakeholders, particularly the communities in which we operate and of which we consider ourselves part of. We would like to assure the public that we are fully compliant with both national and local health, safety and environmental regulations and we will continue to be vigilant in our operations to ensure this,” the organization said in a statement.

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