FPI chairman Meneleo J. Carlos conveyed the groups’ position to Rep. Harry C. Angping, chairman of the House committee on trade and industry.
In a letter dated Aug. 19, Carlos said banning the export of scrap metals is "anti-competitive approach to addressing the problem of steel smelting industries."
Carlos pointed out that "taking away an alternative market for small scrap dealers would only allow a few large companies to dictate the price, the volume and the terms of payment for scrap metal."
Carlos said local smelters have already been given support by the government by way of zero duty on scrap metals.
The TCMAPI, in a separate position paper, argued that banning the export of scrap metal would only lead to monopolistic pricing in the buying of scrap metal by local smelters.
The TCMAPI complained that local smelters are very selective in buying metal scraps, unlike the export market which accepts all kinds of metal waste – ferrous or non-ferrous.
The FPI also warned that a ban on the export of all types of recyclables steel scraps would have an adverse impact on the economy.
Based on data from the National Statistics Office (NSO), exports of ferrous and non-ferrous wastes and scraps have grown from 31.3 million kilograms worth $35.9 million in 1996 to 159.4 million kg worth $55.7 million in 2001.