MANILA – Cement importers warned that cement prices in Metro Manila could hit record-highs if the Department of Trade and Industry (DTI) backs the adoption of protectionist policies.
In an interview, Cohaco Cement Importer chair Napoleon Co said a bag of cement may reach up to PHP250 in the National Capital Region (NCR) if the government imposes safeguard measures to protect the local industry.
He was referring to the levying of additional duties on imported cement to make it less competitive against locally-manufactured cement.
The DTI is currently conducting a motu proprio (official act taken without formal request) investigation on the local cement industry as a reaction to the sharp increase in cement importation. This import surge is reportedly due to increased demand created in part by government's massive infrastructure push.
Co said demand in the domestic market is projected at 30 million to 32 million metric tons. Local manufacturers are expected to supply the 26 million MT, while the remaining 6 million MT must be imported.
Philcement Corp. president Eduardo Sahagun said the increasing import of cement here is also driven by local manufacturers as their output cannot keep up with the strong demand given the booming construction sector in the country.
"The surge of import only came in substantially in 2016 and 2017. When you look at that number, the local industry is the one importing significantly. Why? Because they don't have any more capacity," Sahagun said.
"So even if you have to impose safeguard today, all what will happen is you will increase prices," he added.
Sahagun said 67 percent of the imports in 2016 were made by local manufacturers while, the remaining 33 percent were shipped by the importers, which only represent 6 percent of the total market. "How can you damage an industry that is only impacted by like 6 percent?" he said.
"In fairness to [DTI] Secretary Mon (Ramon Lopez), he is initiating an investigation. He did not impose the safeguard duty unilaterally," Sahagun added.
Co and Sahagun said cement importers will be cooperating with the DTI in its probe and will provide official information that the agency will be needing. (PNA)
