Local galvanized roof makers to delay planned price hike

MANILA, Philippines - Local galvanizers yesterday announced they will delay their plan to increase prices in order to give the Department of Trade and Industry (DTI) more time to remove the seven-percent import duty on cold rolled coils (CRC) and hot rolled coils (HRC).

The Filipino Galvanizers Institute (FGI) said they will be holding off their planned five percent to 10 percent price increase in prices because should the DTI lower import duties, the impact of higher import prices on the cost of galvanized iron (GI) roofing sheets will be lessened. CRC is the material for the production of GI sheets. Hot rolled coils are used to produce cold rolled coils.

Earlier, the galvanizers said they will be increasing GI sheet prices to offset the higher cost of raw materials brought about by continuing increases in the cost of iron ore and related products in the world market.

A five-percent increase in GI sheet prices was to take effect May 1 followed by another five percent rise in June 1. 

The Cabinet-level Tariff Reform Matters (TRM) Committee is reviewing the tariff rates on steel products after a 100- percent increase in the cost of iron ore in the world market. The world’s three biggest mining companies — BHP Billiton Ltd., Rio Tinto of Australia and Ciavale of Brazil — have quoted higher prices for their iron ore supply.

As a result, prices for steel materials such as slabs, billets, wire rods, HRC and CRC have risen by $100-$150 per metric ton compared to 2009 prices.