Import tariff lifting fails to reduce cement prices

MANILA, Philippines - Cement prices are still high despite the lifting of tariff on imported cement but the government said duty free importation has helped stabilized prices.

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 that despite the slowdown in demand, cement firms operating in the country continue to maintain 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.

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

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

The cement industry criticized the government for removing the tariff on imported cement warning that the industry may suffer losses of up to P20 billion once sub standard cement is dumped into the country.

In spite of the high cement prices, Tatel said other construction materials have decreased their prices by as much as 60 percent. “This year is the best time to really build because everybody is looking for a market. Buyers can haggle for the best price,” Tatel said.

The price of angle bars dropped by 60 percent and is expected to remain at those levels. Tatel said the price of steel has been going down because the cost of raw materials in the world market has also been decreasing. Other construction materials dropped by as much as 30 percent, he said.