Overcapacity is not unique to the Philippine cement manufacturers, as cement producers from neighboring countries in the region are also experiencing the same problem.
This was revealed at the recently concluded 71st Asia Cement Producers Amity Club (ACPAC) in Manila where close to 90 delegates, including top industry leaders, shared best practices and sustainability initiatives.
During the conference, majority of ACPAC members shared they are also facing a slowdown of demand in their markets and facing low utilization.
In Indonesia, for instance, the government imposed a moratorium on launching new cement capacity projects to partially mitigate the market slowdown and low utilization.
Taiwan shared that they were able to secure antidumping duties on Vietnam exports in its country. Thailand shared the highlights of its Net Zero roadmap and encouraged other countries to follow.
Meantime, John Reinier Dizon, president of Cement Manufacturers of the Philippines (CeMAP), reiterated local manufacturers are experiencing an overcapacity of more than 51 million metric tons, well above the estimated domestic demand of 35 metric tons annually.
“As we face regional volatility in demand, climate responsibility, rising energy costs and urban growth, ACPAC’s collaborative spirit is more vital than ever,” said Dizon.
Dizon delivered the Philippines’ Country Report, which highlighted market demand drivers, new capacities in the country, and challenges faced by the industry, notably the continuing imports despite current overcapacity.
