Cement importers warned regulators that tightening existing “protectionist” measures would drive up prices, while dismissing claims of a significant surge in imports.
Major cement importers Cohaco Merchandizing & Development Corp. (Cohaco), Fortem Cement Corp. (Fortem), NGC Land Corp. (NGC), Pabaza Import and Export Inc. (Pabaza) and Philcement Corp. (Philcement) said import volumes have remained stable over the years.
The group, in a position paper submitted to the DTI at the end of 2024, urged the agency to halt the motu proprio initiation of preliminary safeguard measures investigation, calling it unnecessary and counterproductive.
The preliminary probe covers cement products under ASEAN Harmonized Tariff Nomenclature (AHTN) Codes 2523.29.90 and 2523.90.00 from various countries, with the period of investigation (POI) spanning from 2019 to June 2024.
Citing data, the importers said cement imports stood at 5.33 million metric tons (MT) in 2019. This increased by 10.34 percent to 5.88 million MT in 2020 and by 17.2 percent to 6.89 million MT in 2021, owing to pandemic-related disruptions in local production.
“Cement suppliers, particularly importers, had to increase imports to meet market demand,” the traders said in the position paper, noting that domestic manufacturers rebounded as restrictions eased, while imports declined by 2.89 percent to 6.69 million MT in 2022.
A moderate 4.74-percent increase followed in 2023, reaching 7.01 million MT. By 2024, imports were projected to hit 7.361 million MT, about 4.96-percent rise.
Traders said this rate of increase does not justify the imposition of safeguard measures under WTO standards.
The importers described the reported import surge as overstated, as a portion of the imports serves as raw material for locally manufactured cement.
Based on the DTI’s preliminary report, the import market share increased from 30 percent in 2019 to 35 percent in 2020, then fluctuated to 26 percent in 2021, 41 percent in 2022, 47 percent in 2023 and 51 percent in the first half of 2024—while local production reportedly declined.
Importers said local cement manufacturers, including both members and non-members of the Cement Manufacturers Association of the Philippines (CeMAP), have expanded operations.
They cited Eagle Cement Corp.’s new 1.5 million MT plant in Bulacan and at least six additional plants in Cebu and Davao operated by non-CeMAP members, bolstering domestic capacity.
Cement importers said the modest rise in imports does not justify new trade restrictions.
