Cement Importers Push Back Against Safeguard Measures, Cite Stability
A group of cement importers in the Philippines has strongly opposed the Department of Trade and Industry’s (DTI) move to impose additional restrictions on cement imports, arguing that such actions could lead to price hikes and are both unnecessary and counterproductive. In a statement issued over the weekend, the traders clarified that there has been no significant surge in cement imports over the years, dismissing claims of a growing influx of imported cement.
The position paper, presented by prominent traders including Cohaco Merchandizing & Development Corp., Fortem Cement Corp., NGC Land Corp., Pabaza Import and Export Inc., and Philcement Corporation, was a response to the DTI’s ongoing investigation under the Safeguard Measures Act. The investigation, which focuses on cement imports from 2019 to 2024, has been triggered by rising import shares — increasing from 30% in 2019 to 51% in the first half of 2024 — and a reported uptick in cement imports, which saw growth of 10% in 2020, 17% in 2021, and 5% in 2023. The importers, however, emphasized that the increase in import volumes was a direct result of the country’s recovery from the COVID-19 pandemic, where cement suppliers, particularly importers, were forced to raise their import volumes to meet the demand as domestic production slowed down. They explained that much of the imported cement was also used as raw material for locally produced cement, further distorting the actual figures of cement sales in the market.
The traders argued that the reported increase in imports was not a “surge” that would justify the imposition of safeguard measures. Rather, it reflected the necessity to meet demand in light of reduced local production. The position paper stressed that any restrictions would only create additional costs, negatively impacting both the cement industry and consumers. With the cement market balancing between imports and local production, the importers cautioned that more regulations could result in a significant increase in cement prices, which would affect ongoing construction projects and potentially slow down the sector’s recovery. The traders called for more comprehensive discussions before moving forward with any safeguard measures, urging the DTI to consider the broader economic impact of such decisions.
