Concreat Holdings plans cement price increase as Philippine building costs climb

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Concreat cement price hike

Highlights

Concreat Holdings Philippines considers raising cement prices by P28 to P40 per bag, with phased implementation potentially starting in mid-November amid rising input costs.
Hearn & Hearn reports third-quarter construction cost pressures worsening due to $109 Dubai crude, diesel prices at about P91 per liter, and peso weakening to P63.23 per dollar.
CHP shares drop 0.91% to P1.09 after the company signals potential further price hikes following phased increases totaling P30 per bag in March.

Cement pricing plan and cost drivers

As reported by BusinessWorld Online, Concreat Holdings Philippines, Inc. is considering raising cement prices by P28 to P40 per bag, with phased implementation potentially starting in mid-November to avoid a sharp shock to demand.

President and Chief Executive Officer Herbert M. Consunji says the company is trying to balance higher fuel, electricity and coal costs against the risk that more expensive cement could hurt sales volumes. He says CHP has not yet fully felt the impact of those pressures because of long-term supply contracts, but is now planning adjustments as cost headwinds build.

The company has not finalized the increase and is still watching coal market movements, overall market conditions and pricing by rival cement makers. In March, CHP implemented phased increases totaling about P30 per bag, or roughly 10%, to offset rising fuel and operating expenses.

CHP produces cement under the APO, Rizal and Island brands through wholly owned subsidiaries APO Cement Corp. and Solid Cement Corp.

Broader impact on Philippine construction

Hearn & Hearn says construction cost pressures intensify in the third quarter of 2026 and are expected to keep rising through the fourth quarter. The consultancy cites Middle East-related oil disruption, record peso weakness and higher labor costs, including the National Capital Region minimum wage increase late in the quarter.

Headline inflation accelerates to 7.2% in September, while the construction materials wholesale price index in Metro Manila rises 3.4% year on year. Hearn & Hearn also says Dubai crude reaches about $109 per barrel during the period, diesel in Metro Manila climbs to about P91 per liter from roughly P55, and the peso weakens to P63.23 against the dollar, adding pressure on imported materials and equipment.

Projects in the early stages of design, tendering and procurement are seen as especially exposed because developers have not yet locked in material prices and contractor quotations. The consultancy estimates construction costs at P36,755 to P55,905 per square meter for mid-rise residential projects, P45,000 to P80,915 for high-rise residential buildings, P42,430 to P70,065 for offices, and P27,655 to P53,515 for shopping malls.

Warehouse construction ranges from P17,005 to P35,675 per square meter, while hotel developments show a wider range of P55,575 to P136,660. Hearn & Hearn advises developers to revisit project budgets, refresh supplier quotations and factor in further increases in material and labor costs when setting schedules and procurement plans.

CHP shares fall 0.91% to P1.09 apiece on Tuesday.

In our earlier article on the surge in crude oil shipping costs, we explained how conflict-related risks and rerouted tanker traffic have sharply increased freight and insurance rates, making transport a much larger component of oil prices. We also noted that import-dependent markets in Asia could face faster pass-through into fuel costs, which can ripple into broader consumer and industrial expenses.

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