Cement importers have refuted claims of a significant increase in cement imports, warning that further restrictions on imports could lead to higher prices for this essential construction material.
In response to the Motu Proprio Initiation of Preliminary Safeguard Measures Investigation on the Importation of Cement by the Department of Trade and Industry (DTI) on October 28, 2024, major cement traders—including Cohaco Merchandising & Development Corp., Fortem Cement Corp., NGC Land Corp., Pabaza Import and Export Inc., and Philcement Corp.—stressed that import volumes have remained stable over the years.
In a position paper submitted to the DTI, the importers urged the agency to discontinue its investigation, calling it "unnecessary and counterproductive."
The inquiry covers cement imports classified under ASEAN Harmonized Tariff Nomenclature Codes 2523.29.90 and 2523.90.00, spanning the period from 2019 to June 2024.
The group presented data showing that while cement imports initially increased during the pandemic—from 5.33 million metric tons (MMT) in 2019 to 6.894 MMT in 2021—this was primarily due to supply disruptions as local manufacturers struggled with quarantine restrictions.
However, as restrictions eased, imports declined by 2.89 percent in 2022 and posted only modest growth in subsequent years.
Traders argued that these figures do not justify the imposition of additional safeguard measures under World Trade Organization (WTO) standards.
The importers also emphasized that not all imported cement is directly sold in the Philippine market, as a portion is used as raw material for local cement production.
They further highlighted that all imported cement undergoes rigorous quality checks before entering the market, with only DTI-certified suppliers being granted a Philippine Standard (PS) License.
Despite DTI's Preliminary Report showing that cement imports accounted for 51 percent of the market from January to June 2024, traders questioned claims that local production declined as a result.
They stressed the importance of a balanced approach that ensures both local and imported cement remain accessible to sustain construction activities and prevent price surges.
The importers warned that additional trade restrictions could inflate cement prices, impacting infrastructure projects and the broader construction industry.
Photo Courtesy: Philippine Star
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