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LOCAL
cement makers posted a 7-percent increase in domestic
sales in 2007 to 12.36 million metric tons (MMT) from
11.48 MMT in 2006.
The
increase in sales was due to hike in domestic demand,
with the November 2007 figures already jumping to 11.93
MMT compared with 11.71 MMT for the whole of 2006.
The
higher demand for cement in the country also resulted in
the increase in importation of the commodity.
From
January to November 2007, the country already imported
279,503 MT of cement compared with only 243,695 MT for
the whole of 2006.
Data
from the Cement Manufacturers Association of the
Philippines (Cemap), however, showed the industry’s
exports went down considerably by 59 percent as of
November 2007 to 293,904 MT.
The
local cement makers have been under attack from
different quarters, including the World Bank, which said
that the prices of cement in the country were among the
highest in the region.
The high
cement prices locally also prompted the government to
look on the possibility of removing the tariff imposed
on imported cement to create more competition and,
hopefully, bring down its cost.
The
government is now deliberating on a possible trigger
mechanism that will be used as basis in eliminating the
tariff on imported cement on a seasonal basis.
The
World Bank said as of last year, cement per ton was
pegged $72 compared with $35 in China, $50 in Thailand
and $65 in Vietnam.
With
this, Trade Secretary Peter B. Favila asked the local
cement makers to submit their financials, including
their operation cost and ex-plant prices, to determine
if they are, indeed, overpricing as claimed by some
groups. |
