The Cement Manufacturers' Association of the Philippines (CeMAP) has refuted claims made by the United Filipino Cement Consumers (UFCC) that cement prices have increased because of the safeguard duty imposed for 200 days in February 2025.
The claims were made by UFFC as it picketed in front of the Department of Trade and Industry to tell Trade Secretary, Cristina Roque, that the organisation is not in favour of the additional PHP16 (US$0.27)/40kg bag (PHP400/t) tariff on all imported cement.
“It’s simply untrue that cement prices have increased because of the safeguard duty. Market data show prices have remained stable notwithstanding the imposition of a provisional safeguard duty in March 2025,” said CeMAP Executive Director, Renato Baja.
“This is about protecting Filipino workers, preserving high-value jobs, and strengthening our trade balance. The cement industry is essential to infrastructure development and economic growth. Supporting local industry is a strategic investment in the nation’s future,” he said in a statement.
He added that cement prices have remained stable since a provisional safeguard duty was introduced in March as a temporary measure to designed to level the playing field for domestic cement producers.
To date, the Philippine cement industry is operating at 53 per cent of its total production capacity. Mr Baja attributed this capacity utilisation rate to the influx of imported cement from countries with considerable production surpluses.
“In Indonesia, capacity is 120Mt, with domestic demand at 65Mt. In Japan, capacity is about 50Mt, while domestic cement consumption is only 33Mt. These countries export their excess supply to the Philippines, undermining local manufacturing output,” Mr Baja explained.
Moreover, in some countries, cement producers benefit from lower production costs, he added. For example, in Vietnam electricity supplied by a state-owned utility is significantly more affordable.
“In contrast, Philippine power costs are approximately twice as high as in Vietnam, placing local manufacturers at a distinct disadvantage. Logistics or freight costs are not a significant barrier, as exporters can ship cement in large vessels carrying up to 25,000t per shipment. According to industry data submitted to the Tariff Commission, the domestic sector saw a 42 per cent drop in profitability in 2024, with total losses exceeding PHP5bn. These financial pressures have also triggered widespread layoffs across the industry,” Mr Baja said.
