Cement makers warn of increase in prices

Local cement manufacturers warned yesterday of a possible increase in cement prices if government fails to adopt safeguard measures against cheap imported cement.

Representatives of the Philippine Cement Corp. (Philcemcor) said yesterday that the Tariff Commission "crucified the local cement industry, its workers and consumers with its recommendation that no safeguard measures is needed to protect the local cement industry."

Edcel Lagman, Philcemcor spokesman said, "Good Friday came two weeks ahead for the local cement industry."

Dr. Francisco Viray, the recently elected president of Philcemcor who is also the senior vice president of Union Cement Corp., warned that " if the Department of Trade and Industry (DTI) accepts the Tariff Commission’s recommendation, the local cement industry would not be able to assure stable cement prices."

"In fact, the price situation would most likely revert back to the high level before the provisional tariff of P20.60 per bag was imposed," Viray said.

Viray added local cement companies may fold up or opt to just engage in trading with less expenses and restrictions.

Both Viray and Lagman said that "if the DTI upholds the recommendation of the Tariff Commission, it sets a precedent that will make it difficult, if not impossible for local industries to obtain safeguards."

The two insisted that the imposition of the provisional P20.60 tariff per bag on imported cement had benefited the industry and consumers alike with local cement prices remaining stable at P125 per bag in the National Capital Region and P135 per bag in the provinces.

Philcemcor was surprised that the Tariff Commission does not consider a 21-percent market share by imported cement a "serious threat" to the local industry.

The 21 percent share, Philcemcor said, amounts to about P6.4 billion.

In Taiwan, which they cited as an example, a mere four percent market share by Philippine cement exports is already considered a threat, prompting the Taiwanese government to impose a tariff of 65 percent on Philippine cement exports.