Displaying items by tag: Department of Trade and Industry

Philippines: A gap between local production and demand is expected to lead to a deficit in cement for the next three to four years to 2020. Napoleon Co, president and owner of cement importer Cebu Oversea Hardware, told the Manila Bulletin newspaper that imports from China and other countries in the Association of Southeast Asian Nations (ASEAN) should be able to address the shortfall until new production capacity is built. Co added that the country imported 6Mt of cement in 2016 mainly from China and Vietnam. Similar or higher volumes of imports are expected in 2017.

Cement importers have been lobbying the Department of Trade and Industry to allow pre-shipment inspection and certification of cement. However, local cement producers have opposed the change.

Philippines: Chief executives from Eagle Cement, Taiheiyo Cement Philippines, Republic Cement, Cemex Philippines and Mabuhay Filcement have opposed government plans for a minimum requirement of pre-shipment inspection for cement imports. Instead they have called for a rigorous testing procedure for all cement coming from abroad to ensure consumer safety, according to the Philippine Star newspaper. In a letter Paul Ang, the chief executive officer (CEO) of Eagle Cement asked the government to draw up revised rules and guidelines on the issue for the cement industry. He also requested that the Department of Trade and Industry (DTI) and other agencies combat technical smuggling of cement.

In separate letters to the DTI, Taiheiyo Cement Philippines president and CEO Satoshi Asabi, Mabuhay Filcement CEO Enrison Benedicto, incoming Republic Cement president Nabil Francis and Cemex Philippines president Ignacio Mijares also argued against pre-shipment inspection in favour of testing imports upon arrival in the country.

Philippines: The National Coalition of Filipino Consumers (NCFC) has asked the Department of Trade and Industry (DTI) to investigate alleged sales of substandard cement. The NCFC ran its own investigation and conducted test purchases, according to the Manila Bulletin newspaper, after receiving reports that substandard cement was being sold in La Union, Davao and in Caloocan City. It found expired, mislabelled and unlabelled products.

Philippines: The Philippine Cement Importers Association (PICA) has supported the Department of Trade and Industry’s measures to regulate cement imports. The association has also proposed that imported cement be tested upon entry, according to the Manila Standard newspaper.

“The PCIA is categorically against importation of sub-standard cement. In fact, the PCIA has proposed to take an active part in monitoring and enforcement against sub-standard cement whether imported or locally manufactured,” said PICA’s executive director Dani Enriquez. He added that sub-standard cement would be bad for business and the country’s infrastructure program.

Philippines: The Department of Trade and Industry has confirmed its support for a plan to require cement importers to secure licenses and clearances for their products. Trade Secretary Ramon Lopez backed the plan first issued in February 2017, according to the Philippines Star newspaper. The Department Administrative Order requires the application of the Philippine Standards licenses on foreign producers of cement imports and import commodity clearance on cement imports, as well as setting a minimum paid capitalisation of US$0.4m for all cement importers. The measures are intended to support domestic self-sufficiency in the cement industry.

Philippines: The Board of Investments (BOI) is seeking investment in the cement sector as it expects demand to double to 40Mt/yr by 2020 due to a peak in government infrastructure spending. At the same time Department of Trade and Industry (TI) Undersecretary for industry promotions group Ceferino S Rodolfo confirmed that two companies are preparing to build new integrated plants, according to the Manila Bulletin newspaper. Both companies are obtaining permits for their projects but Rodolfo would not confirm their identifies. DMCI Holdings was reported in the local press as being interested in building a plant Antique's Semirara Island in early June 2017.

Philippines: Two cement importers have asked the Regional Trial Court of Makati to issue a temporary restraining order against a Department of Trade and Industry (DTI) order restricting imports of cement. Fortem Cement and Cohaco Merchandising and Development allege that the Administrative Order 17-02 prevents imports of cement into the country, with the exception of importers operating integrated cement plants, according to the Manilla Bulletin newspaper. The importers say that the legislation will destroy their business. They also allege that the new rules violate anti-competition rules.

The DTI has defended its legislation, although it recognises the freedom of the importers to challenge it through the legal process. The government department says it issued the revised order to help safeguard the safety of consumers by requiring the strict conduct of standards compliance tests on cement imports. The order requires the application of the Philippine Standards licenses on foreign producers of cement imports, Import Commodity Clearance on cement imports and a minimum capitalisation level for importers to prevent smaller importers.

Philippines: The National Consumer Affairs Council (NCAC) has warned that around 150,000 bags of cement being sold might be contaminated with seawater. NCAC chairman Jose Paredes Pepito said the contaminated cement entered stores after a ship carrying cement from Vietnam encountered a leak that caused 6000t of cement to get wet, according to the Philippines Star newspaper. The imported cement is part of a 25,000t shipment of Halong brand cement which was unloaded in La Union in March 2016.

“Besides, re-bagged cement should not be sold unless first tested by the Department of Trade and Industry (DTI). Unfortunately, the DTI does not know the location of the 150,000 bags at this point. In the meantime, the public should be very careful when choosing the cement products that they buy in the local market,” said Pepito. He added that the contaminated cement is considered substandard and dangerous if used for construction.

Philippines: The Department of Trade and Industry (DTI) has asked cement producers to explain differences in cement prices in certain areas of the country. Price monitoring by the DTI has spotted discrepancies between the high price of cement in Region XII, specifically in Cotabato City, and the National Capitol Region compared to a relative low price in Cebu since January 2016, according to the Philippines Star newspaper.

The DTI has asked cement producers, including Holcim Philippines, Eagle Cement Corp., Lafarge Republic and Cemex Philippines to respond about the prices of their local brands Holcim Excel, Advance, Republic, and Rizal and Apo, respectively. Cement traders such as Bojourno Trading, Summit Koncrete Products and Cohaco Merchandising & Development have also been requested to submit their response for the prices of the imported Halong, Thang Long and Conch cement brands.

Philippines: The Department of Trade and Industry (DTI) has asked cement producers in the Philippines to justify recent price hikes that led prices to exceed the suggested levels set by the agency.

Trade Undersecretary Zenaida C Maglaya said the three largest cement firms in the country - Holcim Philippines, Lafarge Republic, Cemex Philippines - have started submitting documents to support adjustments in their prices. Eagle Cement is set to meet with DTI and Board of Investment (BOI) officials to explain its pricing scheme. Maglaya said one of the large cement manufacturers had made a submission but had yet to complete all requested data due to 'antitrust issues', referring to laws addressing anti-competitive behavior among corporations.

In April 2013, Maglaya said that cement companies had increased their prices due to the higher cost of coal, a raw material that accounted for about 25% of the cement industry's manufacturing costs. Holcim reportedly raised its price by 11%, Lafarge by 7%, Cemex by 15% and Eagle Cement by 5%.

In 2012, the Cement Manufacturers' Association of the Philippines (Cemap) reported record-high sales of 18.4Mt, up by 17.5% from 15.6Mt in 2011. This was due to the boom in public and private construction projects. In the fourth quarter of 2012, 4.4Mt of cement were sold compared to 4Mt in the fourth quarter of 2011.