Needed breather

The local cement industry, now threatened by the influx of cheap dumped cement from other countries mostly from Vietnam, is expected to receive a much-needed breather very soon.

- MARY ANN LL. REYES

The Department of Trade and Industry (DTI) said that it may release this month an update on their motu proprio investigation on the rising imports of cement into the country which has caused significant injury on local cement manufacturers.

Last October, the DTI issued a notice that it will initiate a motu proprio preliminary safeguard measures investigation on the importation of cement from various countries to determine whether increased imports of cement are causing or threatening to cause serious injury to the domestic industry.

Republic Act 8800 or the Safeguard Measures Act provides that the Secretary of Trade and Industry may, motu proprio or in the absence of a petition, 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.

The DTI, through its import surge monitoring system, has recorded a surge in cement imports of both Portland and blended cement for the period covering 2019 to June 2024 from several countries.

It said that the volume of imported cement increased during the period of investigation (POI) except in 2022. In 2020, cement imports increased by 10 percent, in 2021 by 17 percent, in 2023 by five percent, and from January to June 2024 by 52 percent with imports reaching 3.7 million metric tons. Annualized, the 2024 cement level of imports showed an increase of five percent over the 2023 level, the DTI said.

The department noted that the increase in cement imports during the POI was both sharp and significant.

In 2019, cement imports were at 5.33 million, increasing to 5.88 million in 2020 and 6.89 million in 2021. It declined to 6.69 million in 2022 but rose again in 2023 to 7.01 million in 2023. For 2024, imports were projected by DTI to reach 7.36 million.