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Cement Importers Respond to Investigation, Emphasize Market Stability

Cement Importers Respond to Investigation, Emphasize Market Stability

02/28/2025
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Cement Importers Respond to Investigation, Emphasize Market Stability

by Geraldine S.
02/28/2025
in Import/Export Statistics

Cement importers have stated that there has been no substantial surge in cement imports, cautioning that additional restrictions on imports could lead to higher prices for this essential 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 October 28, 2024, a group of cement traders—including Cohaco Merchandizing & Development Corp., Fortem Cement Corp., NGC Land Corp., Pabaza Import and Export Inc., and Philcement Corp.—asserted that import volumes have remained stable over time.

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In a position paper submitted to the DTI, the group called for the discontinuation of the investigation, stating that additional restrictions may be unnecessary.

The investigation focuses on cement products classified under ASEAN Harmonized Tariff Nomenclature Codes 2523.29.90 and 2523.90.00 from various countries, covering the period from 2019 to June 2024.

Citing industry data, traders reported that cement imports were at 5.33 million metric tons (MMT) in 2019. The volume increased by 10.34% in 2020 to 5.88 MMT and by 17.2% in 2021 to 6.89 MMT, attributed to supply constraints during the pandemic. However, as local production resumed, imports declined by 2.89% in 2022 to 6.69 MMT, followed by a moderate increase of 4.74% in 2023 to 7.01 MMT. For 2024, imports are projected to reach 7.36 MMT, reflecting a 4.96% rise.

Traders stated that while there has been a moderate increase in imports, these figures do not fully represent the volume of imported cement available in the Philippine market, as a portion is used as raw material for local cement production.

Importers also emphasized that all imported cement undergoes strict quality control checks before being sold in the Philippines. The Department of Trade and Industry-Bureau of Philippine Standards (DTI-BPS) inspects suppliers’ production processes to ensure compliance with the Philippine National Standards. Only suppliers meeting these criteria receive a Philippine Standard (PS) License, allowing them to distribute cement in the country.

The DTI’s preliminary findings indicate that cement imports have grown from 30% of the market in 2019 to 51% as of mid-2024, with a corresponding decline in domestic production.

Get the latest supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.

#CementIndustry #TradeRegulations #ImportMarket #ConstructionMaterials #PhilippinesTrade

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