Papers (INQUIRER.internet inventory photos)
The Division of Commerce and Trade (DTI) has begun an investigation into whether or not or not the federal government wants to use safeguard measures for imported corrugating medium, an important paper product utilized in making paper boards and cardboard containers.
In an advisory dated February 11, the DTI stated it has formally acquired a correctly documented utility from the Pulp and Paper Producers’ Affiliation of the Philippines (Pulpapel) to begin a evaluation which can cowl 2019 to 2023.
“The appliance alleged that the elevated imports have contributed considerably to the intense harm suffered by the native business,” stated the DTI, which additionally cited that it had discovered a “prima facie” case to justify the probe.
In response to the DTI’s preliminary report, imports of corrugated medium from varied nations have elevated from 74,984 metric tons (MT) in 2019 to 89,311 MT in 2023.
“It steadily elevated in 2021 and 2022 by 18 p.c and 16 p.c respectively, which can be attributed to the financial slowdown as a result of COVID-19 pandemic,” learn the report.
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“Nevertheless, imports of the topic product rose sharply in 2023 by 77 p.c (to about 89,000 MT).
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Within the first half of 2024, the import quantity had already reached round 93,000 MT or 103 p.c of the 2023 stage,” the report learn additional.
The most important suppliers of corrugating medium to the Philippines are Japan, Indonesia, Australia and Vietnam through the specified interval of investigation.
In the course of the 5 years that have been cited, imports of those merchandise from Japan accounted for 45.6 p.c of the whole.
In the meantime, 16.7 p.c got here from Indonesia, 13.7 p.c from Australia, and 12.7 p.c from Vietnam.
The DTI’s report additionally reported fluctuating however considerably decrease gross sales quantity of corrugating supplies produced domestically.
Gross sales quantity of those supplies produced domestically stood at 100 MT in 2019, 81 MT in 2020, 93 MT in 2021, 101 MT in 2022, and 100 MT in 2023.
“In 2023, home gross sales quantity and worth declined by 2 p.c and 12 p.c,” stated the report.
“In response to the home business, gross sales declined on account of a surge in imported paper attributable to sluggish demand in main markets,” it famous, referencing the slowdowns in China, United States, and Japan.
“Majority of enormous overseas mills have extra capability ensuing to the providing of low cost imported costs to the Philippine market to ensure that them to make the most of their manufacturing capability,” it added.
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This, in flip, compelled native paper mills to lower their promoting costs with the intention to compete, with some compelled to close down their machines as abroad mills ate their market share, the report indicated.