Metalcasters ask government to regulate exports of scrap metal

The Philippine Metalcasting Association Inc. (PMAI) has urged government to immediately regulate the exportation of scrap steel to avert the collapse of domestic industries such as foundaries, small iron workshops, metal fabricators and steel manufacturers.

In a press briefing, Jerry Hui, director of PMAI, a group of over 100 metalcasting companies, said the sudden surge in scrap steel exports has deprived these industries of badly-needed scrap steel supplies.

He said scrap steel exports have recently surged to about 30,000 monthly from virtually nil last year.

Big scrap traders have gone into a buying binge to supply scrap steel to Korean, Taiwanese and Malaysian steel companies and foundaries.

"The economy will sustain greater damage if scrap steel exports are not regulated soon. Domestic factories, small machine shops and foundaries will run aground if they are denied of domestic scrap steel supplies," Hui said.

"Many of our members are indirect exporters, supplying higher value-added products to export firms. The allied metalcasting industries provide employment to about 500,000 people, compared to the few employees of these traders.

"Our firms produce goods from shower knobs to car engines. If these firms close shop, we will have to import all of these products and result in bigger foreign exchange losses, compared to the measely foreign exchange revenues of cheap scrap exports."

The surviving domestic steel industry alone produces over $100 million worth of billets and other steel products which would otherwise be imported if they close down. Already, major steel companies have stopped operations including the National Steel Co. and Bacnotan Steel.

"All we are asking is for government to give reasonable protection to local steel and metalcasting industries and striek a balance to allow these industries to survive," Hui said.

He cited that the Department of Trade and Industry (DTI) banned the exportation of raw hides last year to protect the domestic leather industry.

"DTI can do the same for our industries which provide an even greater contribution to the national economy," Hui added.