DTI to Investigate Impact of Rising Cement Imports on Local Industry

The Department of Trade and Industry (DTI) has announced an investigation to assess the impact of increased cement imports on the local cement industry. According to Trade Secretary Ma. Cristina Roque, the probe will determine if rising cement imports are causing or threatening to cause serious harm to domestic producers, as mandated under the Safeguard Measures Act (Republic Act No. 8800).

The preliminary investigation will examine cement importation data from 2019 to 2024. Triggered by evidence of a 51% surge in imports as of June 2024, the DTI’s inquiry also considers the sector’s declining performance, including a drop in sales from PHP 79 billion in 2019 to PHP 64 billion in 2023.

Local cement’s market share has also diminished, falling from 78% in 2019 to 66% in the first half of 2024. Financial pressures have mounted for the domestic cement industry, which saw its operating profits decline by 69% in 2022 and shift to an operating loss in 2023. DTI’s data also suggests that the average cost of imported cement undercuts local prices by 24%, leading local manufacturers to reduce their prices by 2% to remain competitive.

Roque highlighted that the rise in imported cement preceded the domestic industry’s downturn in 2023. Stakeholders are now invited to submit their comments on the investigation.