FPI president Jesus L. Arranza said they are proposing that government convince local downstream industries to commit to buy GSII’s output while at the same time keeping the current tariff rate of three per cent for steel billets and zero for tinplates.
Steel billets are used by the downstream industry to manufacture steel bars for housing, roads, bridges and infrastructure. It is also used for steel merchant shapes for windows, trusses, columns and other structurews.
Tinplates are the raw materials for tin cans for food products, bottle caps for beverages and medicines, and industrial containers for paints, solvents and the like.
The proposed scheme, Arranza said, would simultaneously address the downstream industry’s concern over increased costs of imported steel inputs and the GSII’s fears that it would not have an adequate domestic market without tariff protection.
The India-based GSII is seeking tariff protection for the hot and cold roiled coils and tinplates it will produce at the newly-reopened Iligan plant.