The Department of Trade and Industry (DTI) has initiated an investigation on the alleged dumping of cement from Vietnam to the Philippines.
A notice dated April 20, 2021 signed by DTI Secretary Ramon Lopez showed the agency has determined “the existence of sufficient evidence to justify the initiation of an investigation” on the allegations made by Cemex Philippines, Holcim Philippines Inc. and Republic Cement Builders and Building Materials that cement products are being imported from Vietnam at dumped prices which cause material injury to the local industry.
The DTI in a separate report said “there was a substantial margin of dumping of cement from Vietnam for the period July 2019 to June 2020 based on the domestic wholesale and export prices as gathered by the cement industry.”
If the DTI so determines dumping, this would be a double blow to Vietnam’s cement industry, as the commodity is currently subject to safeguard duty of P9.80 per 40-kilogram bag.
The industry claimed the dumped imports of cement began causing injury in 2019, that led declining revenues resulting to lower profitability as it was “unable to match the unsustainably low prices offered by importers.”
The applications were made individually by the three companies in September and October 2020
Republic’s application said exports of Type 1 and Type 1P cement to the Philippines surged beginning 2016 and continues to rise annually.
Republic said as for the 10-month period in 2020, exports surpassed 2019 volume “as they continued to prey on the local market even during the COVID-19 (new coronavirus disease 2019) lockdown months up until today in spite of the still ongoing health crisis.”
Republic identified 40 importers of cement from more than a dozen Vietnamese companies.
In Holcim’s case, it cited China, Thailand, Indonesia, Taiwan, Japan, South Korea and Pakistan to be also dumping cement into the Philippines.
Holcim identified 16 importers that source from six Vietnamese cement companies at free on board (FOB) of a low of $42.83 per ton to a high of $50.47 per ton.
Based on Holcim’s data, Vietnam cement exports to the Philippies hit a record dutiable value of $32 million in June 2020.
Holcim said the suggested retail price in Vietnam is $67.2 to $77.4 per ton but the calculated normal value FOB is $54.1 to $62.3.
The DTI said the anti-dumping duty will determined based on the price difference between domestic selling price Vietnam versus the export price of cement of each exporter .
