Safeguard duty on galvanized iron bucked

MANILA, Philippines - Imposing safeguard duties on imported galvanized iron and pre- painted galvanized iron (PPGI) sheets and coils could expose the Philippines to retaliatory actions from exporting countries for possible violation of World Trade Organization (WTO) rules.

According to Rene Garcia, spokesman of the Philippine Association of Steelformers Inc. (PASI), data shows that even domestic producers are also importing GI and PPGI sheets because they could not fully supply the market requirements.

Garcia pointed out that for pre-painted sheets, the market size is about 300,000 metric tons (MT) per year. The combined rated capacity of the five active local producers, meanwhile, is only about 210,000 MT.  For GI sheets, the estimated annual market demand is 700,000 MT, while the total domestic manufacturing capacity is only at 450,000 MT.

“These market requirements for GI and PPGI sheets did not take into account the foreseen surge in demand due to the reconstruction efforts in areas devastated by the natural and manmade calamities in late-2013.   This is why PASI has been dissuading the government from imposing safeguard duties on GI and PPGI sheets-the impact on the prices of these roofing materials would be too much of a burden for Filipinos,” Garcia explained.