Interim cement tariff takes effect

The Department of Trade and Industry’s (DTI) decision to impose a provisional safeguard measure on imported cement won strong backing from the Cement Manufacturers Association of the Philippines Inc. (CeMAP).

CeMAP members have been reeling from competition with cheap imports mainly from Vietnam.

DTI’s move follows a preliminary safeguard investigation which found prima facie evidence that an increase in cement imports was negatively affecting the domestic industry.

The DTI pointed to “sufficient evidence of the recent, sudden, sharp, and significant increase in imports” as contributing to serious harm to the local cement sector.

According to available data from the Bureau of Customs, CeMAP noted a significant rise in cement imports.

In 2024, cement imports reached an all-time high of 7.6 million tons, a 10 percent increase over 2023.

Credit to DTI chief

“We’re delighted that finally the DTI’s decision came out. We’ve been waiting for this for a long time. And we really thank (Trade and Industry Secretary Cristina Aldeguer-Roque) for pushing it through,” CeMAP executive director Renato Baja told DAILY TRIBUNE.

He added, “It is really a relief to the local cement industry that they issued a provisional safeguard measure. We’re really happy and we will, as we said, be in full support of the investigation being done now so that they can issue final or general safeguard measures.”

Positive outlook

Baja also discussed the current challenges the local cement industry is facing, particularly with manufacturing costs.

“Basically, fuel and energy are a disadvantage for us compared to Vietnam, where their power is very cheap, and a percentage of it is subsidized by the government,” he explained. “Thus, we are increasing the use of alternative fuels and looking at investing in solar.”

CeMAP further emphasized that the domestic cement industry has sufficient capacity to meet demand, with an annual production capacity of at least 50 million tons.

However, with an estimated demand for cement in 2024 at 35 million tons and imports at 7.6 million tons, effective domestic capacity utilization is only 55 percent.

The group also expressed concerns about the growing volume of imported cement, particularly from Vietnam.

CeMAP believes the surge could risk the country’s economic recovery and undermine the domestic industry’s ability to contribute to inclusive growth.

“CeMAP will fully cooperate with the next steps of the investigation, which will be conducted by the Tariff Commission,” the statement concluded.

Baja is optimistic about the local cement industry’s performance this year, noting that the present administration is pushing for more infrastructure projects.

“We can see that the Marcos administration is also pushing for more infrastructures. In fact, we know that even in the budget there was an effort to increase the spending for DPWH on infrastructure. With that, we’re looking at a positive outlook for cement demand and usage from the government,” he said.

He also noted that the local cement industry is seeing growing demand.

“While we will be able to rise in volume, hopefully by this year, the competition for cement will also improve here in our local area,” Baja added.