Displaying items by tag: Import
Indian cement importers cancel orders from Pakistan
20 February 2019India/Pakistan: Cement importers in India have asked exporters in Pakistan to stop their consignments following a 200% rise in tariffs for cement and other products in India. The duties have been imposed in response to an attack on police in Pulwama in Jammu and Kashmir in mid-February 2019, according to the Dawn newspaper. A source quoted by the newspaper said that cement shipments are being recalled on route to destinations in India.
Around 75% of Pakistan's cement exports to India are conducted at the Wagah land border, while the rest are handled at sea. Exports to India between July - January of the current financial year were 0.65Mt and exports in 2017 -2018 were 1.2Mt.
SCG unfazed by cement import tariff in the Philippines
12 February 2019Philippines: SCG Philippines Country Director Anuvat Chalermchai says he is unconcerned about the country’s new tariff on imported cement because the company’s imports are ‘very small.’ The subsidiary of the Thai conglomerate imports 0.2 – 0.3Mt/yr of cement, according to Business World. It operates seven companies in the Philippines: United Pulp and Paper Company, SCG Trading Philippines, Green Siam Resources, Green Alternative Technology Specialist, SCG Marketing Philippines and Mariwasa Siam Ceramics.
Philippines Tariff Commission looks into cement import duty
06 February 2019Philippines: The Philippines Tariff Commission has started a formal investigation into the provisional safeguard tariff placed by the Department of Trade and Industry (DTI). Consumer group Laban Konsyumer asked the commission to place a temporary restraining order on the tax but the body said it lacked the power to do so, according to the Philippine Star newspaper. The commission has three months to reach its verdict. The DTI placed tariffs on cement imports in January 2019 to protect local producers.
Gambian cement importers complain about tariffs
05 February 2019The Gambia: Cement importers have asked the government to treat all importers equally. Alhajie Cessay, a local importer, said that some government-preferred companies that import cement from Senegal are exempt from the tax, according to the Point newspaper. However, other importers have been subject to tariffs since the start of 2019.
Update on the Philippines
30 January 2019The cement industry in the Philippines has been generating a lot of ‘steam’ in the past three months. Some of this has now come to a head in the last few weeks with the Department of Trade and Industry’s (DTI) decision to impose tariffs on imported cement and the Philippine Competition Commission’s (PCC) on-going investigation into alleged-anti-competitive behaviour. Then, there was the unnamed sourced quoted by Bloomberg this week that LafargeHolcim was seriously thinking about selling up in the country.
Resistance to imported cement has been building for a while as local producers and importers have repeatedly clashed in the media. The latest thread of this story started in September 2018 when the DTI started an investigation into imports. A review by the department found that imports grew by 70% year-on-year in 2014, 4391% in 2015, 549% in 2016 and 72% in 2017. However, the market share of imports grew from 0.02% in 2013 to 15% in 2017. This was followed by various organisations taking sides. The Philippine Constructors Association, Laban Konsyumer (a consumer group), the Philippine Cement Importers Association and others came out on the side of the importers, warning of the risk to prices and consumers if duties were implemented.
It didn’t stop the DTI though. It imposed a provisional safeguard duty of US$0.16/bag on imported cement, around 4% of the cost of a 40kg bag. The PCC then said that it was going to consider the new tariff as part of its on-going investigation. Its probe started in 2017 following allegations that the Cement Manufacturers Association of the Philippines (CEMAP), LafargeHolcim Philippines and Republic Cement and Building Materials had violated the Philippines Competition Act by engaging in anti-competitive agreements.
Amid all of this, LafargeHolcim popped up earlier this week with a news story that it was actively trying to find the ‘right’ price for its local subsidiary, Holcim Philippines. The ‘right’ price at the moment being something around US$2.5bn for four integrated plants and associated assets. That’s around US$225/t of production capacity using the total of 8.4Mt/yr in the Global Cement Directory 2019 and considering LafargeHolcim’s 75% share in the subsidiary. This is about what you’d expect, but it is certainly higher than the US$120/t LafargeHolcim has officially accepted for its divestment of its Indonesian operations.
Given the anonymous nature of the sources involved, it’s uncertain whether LafargeHolcim’s alleged intentions to sell in the Philippines is anything more than market scuttlebutt. What is more certain is that Holcim Philippines has had a tough time so far in 2018, reporting a 23% year-on-year drop in earnings before interest, taxation, depreciation and amortisation (EBITDA) to US$64.8m in the first nine months of 2018 from US$83.9m in the same period in 2017. Sales have grown but this has been hit by the fuel, power and distribution costs as well as the depreciation of the Philippine Peso against the US Dollar. It also blamed imports for its problems. However, alongside all of this the company announced in December 2018 that it was spending US$300m towards increasing its production capacity by 30% to 13Mt/yr by 2020. This includes upgrades to its plants at Bulacan and Misamis Oriental with the installation of new kilns, mills and waste heat recovery systems.
The latest victory in the war between producers and importers seems to be on the side of the producers as the government steps in with protection for the industry. The Philippines’ economy is doing well with its gross domestic product (GDP) forecast to rise by 6.5% in 2019 by the World Bank. The trick for the government will be striking the balance between shielding industry from dumping and allowing the construction industry to keep on growing. Rumours about LafargeHolcim selling up are enticing but seem less likely than LafargeHolcim’s decision to exit Indonesia. Leaving would mean abandoning South-East Asia and exiting a country with a growing industry.
Philippines: The Philippine Competition Commission (PCC) says it will consider a new tariff on imported cement as part of its investigation into alleged anti-competitive behaviour. In early January 2019 The Department of Trade and Industry (DTI) said it would impose a provisional safeguard duty of US$0.16/bag on imported cement, according to the Philippine Star newspaper. The PCC started its latest investigation into the cement industry in 2017. Previously it said it planned to complete the study in 2019.
Japanese clinker shipment arrives in Fiji
24 January 2019Fiji: The Tasman Sea, a bulk carrier, has delivered clinker from Japan for the Tengy Cement plant via the port of Lautoka. The vessel carried 26,800t of clinker, according to the Fiji Sun newspaper. It will also deliver clinker for Tengy Cement’s plant in Suva. Madulesh Lakhan, operations manager of Transam Fiji, said that his company arranges clinker imports every three months to the country. Pacific Cement also uses the service.
The Gambia raises import tariffs on cement from Senegal
23 January 2019The Gambia: The government has introduced a 5% import tariff on cement imports from Senegal. The new tax was issues to the Gambia Revenue Authority in November 2018 for enforcement from the start of 2019, according to Foroyaa news website. Local cement dealers have complained about the new tax, saying that local production is unable to meet demand. They have urged the government to reconsider its policy.
SCG to buy out share in Cambodian transport company
23 January 2019Cambodia: The cement arm of Thailand’s SCG plans to buy the remaining shares in Jumbo Barges, a water transportation and logistics company, for US$0.5m. Once completed, the cement producer intends to invest in the subsidiary to grow its logistics business in Cambodia including bulk cargo for both import and export. It also plans to use the company to provide logistics to neighbouring countries. The transaction follows two similar deals for logistics companies in Thailand.
Philippines Department of Trade and Industry clarifies certification rules for cement
21 January 2019Philippines: The Department of Trade and Industry (DTI) has issued supplemental guidelines for the certification of cement. The regulations require producers or importers to follow conditions set by the Bureau of Philippine Standards (BPS), according to the Manila Times newspaper. The new rules require producers or importers to post a bond ahead of trading. Non-compliance with the certification rules can then lead to a forfeit of some or all of the bond. Not following the regulations can also lead to a producer or importer being prevented from supplying, distributing, selling or displaying their products. The new rules specify that an importer should apply for a statement of confirmation (SOC) on a per product, per shipment, per bill of lading basis prior to its distribution in the market.