The steel manufacturing industry
According to the Institute for Development and Econometric Analysis, Inc. latest Industry Trends, steel manufacturing industry is seen as a significant driver in raising national output. According to the data of the 2009 Annual Survey of Philippine Business and Industry, and Centre for Research and Communication estimates of updated Input?Output tables for 2008, every new investment of P100 million in the industry leads to P260 million increase in domestic output, a P24 million rise in household income, and an additional 117 new regular jobs. As of 2013, registered investments amount to P42.3 billion.
Per IDEA, the GVA of the manufacturing industry soared by 10.5percent from P1.39 trillion in 2012 to P1.54 trillion in 2013. In addition, the GVA of basic metal industries skyrocketed for the first time in 3 years by as much as 51.1 percent to P31.69 billion. With the industry seeing a drought in 2012, the increase in 2013 is a huge relief for the industry and for the Philippine Iron and Steel Industry in achieving the goal of being a globally competitive provider of quality steel products to domestic users by 2030.
Data from the Philippine's Board of Investment showed that steel consumption grew by 9.2 percent in 2013 to 6.58 million metric tons from 6.03 million metric tons from the previous year. The growth is mainly attributed to the continuing growth of the real estate industry in the country with construction accounting for as much as have 81 percent of the total demand in the steel industry, according to the BOI. Another factor that solidified the expansion was the increase in the government infrastructure spending.
Steel manufacturing industry continues to prosper in spite of the calamities that hit the country in the past year. An industry official stated that the industry sees an 8percent growth, led by all the reconstruction and rehabilitation activities following super?typhoon Yolanda and the Bohol earthquake.
Growth in steel market draws attention of foreign investors with a 50percent increase in demand for steel products over the last two years; many companies are expecting strong demand for steel will remain in the next few years. The rise in demand however, may probably require additional capacity. Trade undersecretary Adrian S. Cristobal Jr. stated that steel manufacturers from China, Korea, Taiwan, Japan and other Asian companies are keen on investing in and setting up shop in the Philippines to cater in the rising domestic demand for steel products.
Different foreign companies like the Uttam Galva Metallics Ltd. of India have also expressed their interest on reviving the Global Steel Philippines Inc.'s closed facility or setting up a new plant. GSPI was once the country's biggest steel manufacturer acquiring assets from the National Steel Corporation in Iligan City in 2004. The plant, however, was forced to close down in 2010 amid financial and labor issues and has not been in operation since then.
A report however from the Steel Angles, Shapes & Sections Manufacturers Association of the Philippines, Inc. expressed concern about the potential damage that substandard steels can inflict in the industry. According to the report, about 45 percent of outlets in 18 provinces sell substandard angles. It is also reported that there is proliferation of substandard steel products from China that are being sold in stores across 60 provinces in the country, per IDEA.
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