Despite the presence of large cement factories in the Philippines, members of the National Chamber of Real Estate and Builders’ Associations, Inc. (Creba) are poised to import cement products from other countries due to the soaring prices of local cement.
“The price of locally manufactured cement here is very expensive. We find it much cheaper if we import cement products from Indonesia, Taiwan, and China,” said Creba national president Pedro C. Tario.
According to Tario his group is seeking help from the government through the Department of Trade and Industry’s Philippine International Trading Corporation (PITC) to source out cement products from other countries that are cheaper, compared to locally manufactured cement.
With the help of PITC, Creba members will be able to canvass good quality but cheaper cement and steel bar products in other countries like Indonesia, Taiwan and China.
The improving construction sector in the country, fueled by the rebound in the real estate sector, pushed further the shortage in supply of cement and steel bars in the Philippines, making locally produced products more expensive, he said.
“We want to resolve the problem on the high cost of cement and steel bars through importing,” he added.
Tario added that because of the shortage of cement products, infrastructure projects from both the government and private sectors initiated have suffered. Thus, importation option is being seriously considered by the Creba members.
The good prospects of real estate in the Philippines have encouraged more developers to plan out more residential and commercial projects. However, some of the planned projects are being postponed or reconsidered due to some problems like cement supply, and availability of land properties, among others.
The PITC, he said had been helping developers and contractors, outsource cheaper cement products, but this time, Tario said Creba will intensify this program, and push for a formal partnership with PITC to ensure enough cement supply here, with cheaper cost.
The active consumer market fueled by the OFW buyers has helped the real estate sector get back on its feet again, after being heavily affected by the mid 1997 economic crisis.
Tario said more developers are now constructing or building residential subdivision projects to take advantage of the good market interest, but availability of raw materials for construction like cement and steel bars has become a problem for developers.