Cement surplus adequate to supply local market — CEMAP

The country's organization of cement manufacturers stressed that there is a surplus of cement in the Philippines, even though the government continues to allow its importation from cement-importing nations, particularly Vietnam.

During a radio interview on Saturday, Reinier Dizon, president of Cement Manufacturers of the Philippines or CEMAP, maintained that the country is self-sufficient when it comes to cement production.

"In fact, in our estimate, we have 46 million tons of capacity, while estimated demand is between 35 to 36 million tons. So, there is a surplus," he said.

The country last year imported around seven million tons of cement in 2022, according to Dizon.

"For this year, imports that are expected to arrive is at 5 to 6 million. That's the trend we see," Dizon added.

Quality of local cement

He said in terms of quality, Philippine cement is at par and very competitive with other country's cement, as the quality of those locally produced undergoes intensive scrutiny by the Department of Trade and Industry's Bureau of Product Standards.

"Our products have a PS (Philippine Standards) mark, which customers should look for. And it is easier to run after local manufacturers selling substandard cement compared to imported products," Dizon underlined.

He urged consumers to buy local cement products that are certified by the DTI-BPS, as prices of local cement are "very competitive" though a bit pricey compared to imported cement.

Energy intensive

"This is because producing cement in the country is very energy intensive as we use a lot of coal and electricity, aside from the logistics costs," he said.

The price of locally produced cement ranges from P230 to P240 per bag within the National Capital Region but Dizon stressed that it still varies as retailers and market forces.

Last March 2023, the Bureau of Customs applied anti-dumping duties on imported Vietnamese cement for the next five years to circumvent its "imminent threat" to the domestic cement industry.

The release of Customs Memorandum Order No. 05-2023 for the implementation of anti-dumping duties was in lieu of the DTI Department Administrative Order 23-01 released last 14 February 2023.

DTI's DAO 23-01 takes effect upon the issuance of the relevant CMO by the BOC.

The definitive anti-dumping duties apply to imports of ordinary Portland cement type 1 (AHTN 2017/2022 Subheading No. 2523.29.90) and blended cement type 1P (AHTN 2017/2022 Subheading No. 2523.90.00) originating in Vietnam, according to CMO 05-2023.