Cement import surge continues

Vietnam remains the largest supplier of imported cement for the Philippine market, accounting for 93 percent of total imports during the January to June 2024 period.

- MARY ANN LL. REYES

According to the Department of Trade and Industry, from 2019 to the first half of this year, Vietnam accounted for the largest share of Philippine cement imports. From 79 percent market share in 2019 or around 4.23 million metric tons, its share increased to 91 percent in 2020, 93 percent in 2021, 95 percent in 2022, 98 percent in 2023 with a total volume of 6.88 million metric tons, and then 93 percent during the first half of this year.

Alarmed by rising cement imports, the DTI has just found prima facie evidence to motu proprio or on its own initiate and conduct a preliminary safeguards investigation to determine whether cement is being imported into the Philippines in increased quantities and is causing serious injury to the domestic industry. Such investigation can result in the DTI ordering the imposition of provisional safeguard duties on imported cement, which will be on top of regular import duties.

It said that there are indications that increased imports of cement are the substantial cause of serious injury to the domestic cement industry in terms of declining market share, production, sales, capacity utilization, profitability, price depression, suppression and undercutting.

The implementing rules of Republic Act 8800 or the Safeguard Measures Act provide that in the absence of a petition, the DTI Secretary may, motu proprio, initiate a preliminary safeguard investigation, if there is evidence that increased imports of the product under consideration are a substantial cause of, or are threatening to substantially cause, serious injury to the domestic industry.