Metal industry cautious on exports

MANILA, Philippines - The Philippine metal industry is cautious on prospects for exports this year in line with the projected reduction in imports from the United States.

Jimmy Chan, Philippine Exporters Confederation Inc. metals sector trustee, said the industry saw a growth for the first quarter which was generally driven by the peso devaluation against the US dollar and upward trend in metal prices.

“However, export outlook is cautious on the upward adjustment on US interest rates. Internal protective move towards US protectionism sentiment may cause scale down of US total imports,” he said.

Chan said the Japanese automotive export market, meanwhile, seems to be sustaining the growth momentum, driving most local metal firms to be upbeat despite prevailing cautiousness.

“Automotive electronics (are) following the uptrend. Solar energy also must be worthy of consideration,” he said.

On the domestic front, Chan said that most investments made, mainly downstream fabrication-focused, were anticipating “brisk” business for this year.

He said construction on housing and government move toward manufacturing resurgence program continue to drive sustained domestic growth.

“Additional infrastructure activities may add new activities in the heavy construction,” Chan said.

The Duterte administration is ushering in the “golden age” of infrastructure for the country through an aggressive infrastructure spending program which has a budget of P8 trillion until 2022.

Last year, Chan said new investments in the local metal industry were put on hold as volatile world prices took their toll among local firms.

Aside from the global slump in metal prices, Chan also said the sector experienced problems concerning importation, leading some local metal firms to defer their investment projects.