Total ban sought on exports of aluminum scrap

The Consolidated Aluminum Smelter, Extruder and Kitchenware Association (CASEKMA) is seeking the intervention of President Arroyo for the total and unconditional ban on aluminum scrap export.

Edilberto L. Ferrer, CASEKMA acting president is appealing to President Arroyo to help save the country’s aluminum products manufacturing industry "now on the verge of extinction because of indiscriminate exportation of aluminum scrap materials to foreign countries."

"We use to have a stable and profitable aluminum manufacturing industry. Cheap raw materials are readily available from recycled sources. The problem started when big junkshops begun procuring the scraps and exported this abroad," Ferrer said.

Raw materials for aluminum products because scarce and its price from local sources jacked up since exportation of the stuffs started two years ago. From P24 per kilo, the price soared to a high of P56 per kilo because the exporter themselves are competing to corner the scraps supply, Ferrer added.

"As a result, our companies were forced to slow-down on operations. Our production were drastically reduced and the workers have to go through rotation when some companies were forced to resort to three-times-a-week work scheme," Ferrer disclosed.

Some of the companies involved in the manufacture of aluminum products were forced to close-shop for lack of raw materials. Each company requires from 10,000 to 50,000 tons of scrap aluminum for their yearly operations, CASEKMA officials said.

"If conditions presently obtaining will not improve, we may just join the aluminum exporters and sign the ‘death warrant’ for aluminum products manufacturing in the country," Ferrer warned.

"If this happens, all locally produced products will be replaced by imported ones at a price twice or thrice the price of their local counterparts. Consumers’ interests will be compromised," he explained.

"With the industry‘s extinction, its labor force will join the ranks of the unemployed. If we will act on the problem now, we can help prevent the impact of economic dislocation to the affected sector," Ferrer said.

Ferrer lamented the fact that some agencies tasked by authorities to study and address the industry’s problem have not come up yet with a workable solution.