Traders deny surge in cement imports

The Philippine Star

February 28, 2025 | 12:00am

MANILA, Philippines — Cement importers have denied any significant increase in the volume of cement imports into the country, warning that additional restrictions to the existing “protectionist” measures already in place could only lead to higher prices of this basic construction material.

In response to the *Motu Proprio Initiation of Preliminary Safeguard Measures Investigation on the Importation of Cement* conducted by the Department of Trade and Industry (DTI) on Oct. 28, 2024, cement traders comprising Cohaco Merchandizing & Development Corp., Fortem Cement Corp., NGC Land Corp., Pabaza Import and Export Inc. and Philcement Corp. (Philcement) explained that the volume of imports has remained steady over the years.

In a position paper addressed to the DTI, the group urged the agency to discontinue its investigation on the importation of cement imports, describing the move as unnecessary and counterproductive.

The preliminary investigation involves cement products classified under the ASEAN Harmonized Tariff Nomenclature Codes 2523.29.90 and 2523.90.00 from various countries. The Period of Investigation covers cement imports from 2019 through June 2024.

The cement traders cited data showing that cement imports stood at 5.33 million metric tons (MMT) in 2019. This figure grew by 10.34 percent in 2020 to 5.882 MMT and by 17.20 percent to 6.894 MMT in 2021. Importers attributed this increase to the pandemic period, during which local production was curtailed as manufacturers faced difficulties operating due to quarantine restrictions imposed by the government.

“Cement suppliers, particularly importers, were compelled to increase the volume of imports to meet the demand for cement in the country,” the position paper stated.

But as lockdowns and quarantine restrictions eased, cement manufacturers swiftly recovered and imports declined by 2.89 percent to 6.695 MMT in 2022 before posting a moderate increase of 4.74 percent to 7.013 MMT in 2023. In 2024, cement imports were projected to have reached 7.361 MMT, representing a modest 4.96 percent increase. At this rate of increase, traders maintained this does not warrant the imposition of safeguard measures under WTO standards.

While acknowledging the modest increase in cement imports, traders argued that the figures do not accurately reflect the volume of imported cement sold in the Philippine market. In their letter, they emphasized that a portion of the imported cement is used as raw material for the importers’ production of locally manufactured cement. Considering this, importers asserted that the “reported surge in import volumes did not occur.”

Importers emphasized that all imported cement goes through strict quality checks before it can be sold in the Philippines. Before any supplier can export cement to the country, the Department of Trade and Industry-Bureau of Philippine Standards (DTI-BPS) carefully inspects their production process and ensures their cement meets quality standards set out in the Philippine National Standards. Only those that pass are granted a Philippine Standard (PS) License and allowed to be imported.

The importers also questioned the alleged decline in local cement production amid increasing cement imports.

According to the DTI Preliminary Report, cement imports rose from approximately 30 percent of the market in 2019 to 35 percent in 2020, 26 percent in 2021, 41 percent in 2022, 47 percent in 2023 and 51 percent from January to June 2024, as domestic production declined.