CeMAP refutes claims safeguard duty raised cement prices

The Cement Manufacturers’ Association of the Philippines (CeMAP), Inc. on Monday refuted claims made by the United Filipino Cement Consumers (UFCC) that cement prices have increased because of the safeguard duty.

This came after the UFCC picketed in front of the Department of Trade and Industry to tell Trade Secretary Cristina Roque that they are not in favor of the additional P16 tariff on all imported cement.

“It’s simply untrue that cement prices have increased because of the safeguard duty. Market data show prices have remained stable notwithstanding the imposition of a provisional safeguard duty in March 2025,” said CeMAP executive director Renato Baja.

He stressed that safeguards do not restrict trade.

From 2019 to 2022, when similar measures were in place, cement imports continued to grow—demonstrating that the policy supports fair competition without blocking market access.

“This is about protecting Filipino workers, preserving high-value jobs, and strengthening our trade balance. The cement industry is essential to infrastructure development and economic growth. Supporting local industry is a strategic investment in the nation’s future,” he said in a statement.

Baja said the safeguard duty was being sought by CeMAP to ensure fair competition in the national interest.

“Cement prices have remained stable since the DTI introduced a provisional safeguard duty in March. Importantly, the safeguard duty is a temporary measure designed to level the playing field for domestic manufacturers. While foreign manufacturers and suppliers often benefit from government subsidies, Philippine cement producers operate without such subsidies. This imbalance has made it difficult for local companies to compete fairly, prompting the need for protective action,” Baja explained.

He said the domestic cement industry is composed of several local manufacturers and players, contributing to a competitive and diverse local market.

To date, the industry is operating at just 53 percent of its total production capacity of 51 million tons.

Baja said the underutilization is largely due to the influx of imported cement from countries with massive production surpluses. In Vietnam, the total installed capacity is about 123 million tons, compared to domestic demand of about 65 million tons, with further capacity expansions underway.

“In Indonesia, capacity is 120 million tons, with domestic demand at 65 million tons. In Japan, capacity is about 50 million tons, while domestic cement consumption is only 33 million tons. These countries export their excess supply to the Philippines, undermining local manufacturing output,” Baja further explained.

He maintained that a key reason imported cement is cheaper is lower production costs abroad. In Vietnam, electricity supplied by a state-owned utility is significantly more affordable.

“In contrast, Philippine power costs are approximately twice as high as in Vietnam, placing local manufacturers at a distinct disadvantage. Logistics or freight costs are not a significant barrier, as exporters can ship cement in large vessels carrying up to 25,000 metric tons per shipment. According to industry data submitted to the Tariff Commission, the domestic sector saw a 42 percent drop in profitability in 2024, with total losses exceeding P5 billion. These financial pressures have also triggered widespread layoffs across the industry,” Baja said.

“The safeguard duty is temporary and fair,” he added. “Importers can absorb the duty as prices have remained stable for six months. The measure simply allows local producers to compete without burdening consumers.”

He further noted, “The safeguard duty will enable local manufacturers to increase their capacity utilization and invest in productivity-enhancing improvements. Importers also have the option to source from local manufacturers, which will naturally help the local industry and preserve jobs.”