Prices of major construction materials are starting to rise in step with the spike in oil prices after the U.S. and Israel launched missile strikes on Iran, which retaliated with attacks on neighboring countries in the Middle East and by closing the Strait of Hormuz, where about 20 percent of the world’s oil supply passes through.
Starting Monday, March 16, local cement retailers are expected to implement a price increase of PHP10 to PHP15 per bag, following an advisory from major cement manufacturers and traders, sources said.
Prices of imported cement are also rising, with increases ranging from PHP10 to PHP30 per bag.
Ferdinand Co, CEO of cement importer NGC Marketing Corp., said the price hike is driven by higher foreign cement prices due to rising energy costs, increased bunker fuel prices for international vessels, higher trucking costs resulting from the increase in diesel prices in the Philippines, and the depreciation of the peso.
“We have no choice but to increase accordingly, not to make profit but pass on some of the expenses slowly while we are absorbing the other costs,” he said.
Meanwhile, prices of steel products are also increasing this week by as much as 15 percent, particularly for Grade 33 steel used in residential construction and Grade 40 steel used in high-rise buildings. Prices of electrical wires had already been rising even before the Middle East crisis due to strong demand for copper.
Paint manufacturers have likewise implemented price increases since Monday, March 10. In an advisory to its distributors, Pacific Paint (Boysen) Philippines Inc. announced a price adjustment of 10 to 15 percent, citing the recent energy crisis, which has significantly affected the cost of key raw materials used in production.
