DTI vows to act on high cement prices

MANILA, Philippines – The Department of Trade and Industry (DTI) vowed to act on the high price of cement as the cost of this construction input remained high despite government intervention.

In an interview, Secretary Peter B. Favila said that the prices of cement remain high even if the government removed the tariff on imported cement.

Because of this, Favila said he is not looking favorably at extending the six-month tariff suspension they implemented late last year.

“I don’t see prices improving. I am not excited (to extend zero tariff),” Favila told reporters.

In spite of this, Favila said that he will “do something to make sure prices are reasonable and comfortable.”

He said that they are supporting the move of the Congress to look into the high prices of cement. “I will support the Congressional hearing.”

Cement is the only construction material that did not decrease their price in spite of the slowdown in consumer demand. Other materials like steel have gone down by 30 percent to 60 percent.

Steel, Angles, Shapes and Sections Manufacturers Association of the Philippines (SASSMAPI) Spokesperson Al. S. Tatel said the only construction material that has not decreased its price is cement. He said in spite of the slowdown in demand, the cement firms operating in the country maintained their high prices.

He said they cannot explain why the cement firms all decided to keep their prices at high levels even if they are experiencing declining sales as evidenced by their decision to cut cement production for this year.

DTI Undersecretary Zenaida C. Maglaya said the zero tariff has kept the prices from increasing. “Now the price is not moving,” she explained further.

The government has lifted the tariff on imported cement in a bid to allow consumers access to cheaper cement.