CeMap seeks higher safeguard duties for cement

Industry group, Cement Manufacturers Association of the Philippines (CEMAP), is requesting P600 per metric ton safeguard duties on cement imports to at least achieve break-even sales amid the continuous dumping of cheaper imported cement products from Vietnam.

“Based on the letter with a prayer sent to the Department of Trade and Industry, we are asking for P600 per metric ton, higher than the P400 provisional safeguard duty per metric ton imposed by the DTI last March,” said CeMap executive director Rey Baja, during his conversation with reporters on Thursday in BCG, Taguig City.

In March, the Department of Trade and Industry imposed a provisional safeguard duty of P400 per metric ton, or P16 per 40-kilogram bag, on imported cement that lasted only for 200 days, and expired last September.

Request

The CeMap official said their request would only cost a cement bag P24, and said they came up with the request upon comparison of the landed cost of imported cement against the gate price of cement from local players.

“The P600 per metric ton is our fair price for three years’ safeguard duties,” he stressed.

In its 30 September report, the Tariff Commission, after rounds of public consultation that were attended by local manufacturers that compose CeMap, recommended the imposition of a P349 per metric ton safeguard duty on cement imports.

Position paper 

submitted to DTI

“In our position paper to the DTI, we indicated there that the TC recommendation is not enough, as the P600 per metric ton of cement request was in consideration of the real injuries on the cement domestic industry,” according to Baja.

Baja maintained that CeMap does not believe that if safeguard duties were imposed on a certain commodity, prices would surge.

“Remember when the DTI imposed the P400 safeguard measure, there was no price increase. So, we don’t buy what others say that a safeguard duty would make prices surge. That’s proven and tested for how many months now. Second, in the Philippines, we have enough competition, both local and multinational companies. So, when we say the competition is disappearing, it means we have more than enough supply,” he said.

Ample supply of cement

Baja maintained that the country has an ample supply of cement to satisfy the needs of the country’s construction industry, 40 percent of which goes to the government’s infrastructure projects.

CeMap earlier said that in 2024, cement imports reached 7.6 million metric tons, mostly from Vietnam, which happened even though the Philippine industry has a total capacity of 51 million tons.

Demand was only around 35 million tons, and actual production dropped to 27 million tons. That means only 53 percent of the capacity was used, resulting in P5 billion in revenue losses, slower operations, and job cuts.

Safeguard duties for imported cement

Trade Secretary Cristina Roque said they will release the safeguard duties for imported cement on or before 14 October 2025, maintaining that they have to do it to protect local cement industry players.

The safeguard measure was earlier backed by the Philippine Chamber of Commerce and Industry and the Federation of Philippine Industries, stating that it is needed to protect local jobs and keep the industry alive.

Cement manufacturing contributes at least 1 percent to the country’s GDP and supports around 130,000 direct and indirect jobs.