Posted on 01 Apr 2024
Philippines is set to witness an upsurge in steel demand, fuelled by the government's ambitious plan to boost infrastructure spending, says Ronald C. Magsajo, president of the Philippine Iron & Steel Institute at the Kallanish Asia Steel Markets 2024 event on 28 March in Ho Chin Minh City, Vietnam.
He further adds, “The share of the infrastructure sector in the country's GDP has seen a significant increase, from 3-4% five years ago to 5.5-6% in 2023.”
With an annual steel consumption of 10 million tonnes, comprising around 55% rebar and 45% flat steel, the Philippines relies heavily on imports to meet its steel needs.
“There are only 2-3 electric arc furnaces, majority share is that of induction furnaces, while there is no blast furnace in the country,” highlights Magsajo.
The country imports approximately 70% of its long product requirements and entirely depends on imports for flat steel due to the absence of domestic flat steel rolling mills.
Imports come mainly from China and India into Philippines. However, the government is actively seeking foreign investments to develop domestic steel manufacturing facilities, aiming to lessen dependence on imports.
In the interim, this presents an opportunity for Asian countries to capitalize on the Philippine market by exporting steel.
As the country works towards establishing more of its own steel mills, there is a window of opportunity for regional steel producers to meet demand and strengthen trade ties with the Philippines.
Also, as the government pushes forward with its infrastructure agenda, the Philippines is poised to become a notable player in the ASEAN steel market, with significant implications for regional trade dynamics, Magsajo notes.
Source:Kallanish
