Iron and Steel

The Philippine iron and steel industry is a critical component in achieving inclusive economic growth and sustainable development. The industry provides necessary inputs for the construction of infrastructure, power generation and distribution, transportation facilities and vehicles, manufacturing machinery and equipment - all of which are vital for a nation’s long-term growth. The industry’s outputs are utilized by both commercial and industrial enterprises, such as electronics, appliance manufacturing, and shipbuilding, among others. The Philippine iron and steel industry aims to contribute to the country's sustainable development by manufacturing world-class products for the industry and society, and sees itself as a majority producer of high-quality and safe steel products for domestic users by 2030. This is achieved when the industry is able to supply 70% of the tonnage of required apparent steel consumption. To achieve this, the industry recommends the implementation of measures that would reduce the costs of importing raw materials and losses of revenue due to unfair competition; reduce electricity costs; reduce logistics costs; encourage investment in the industry; enlarge the pool of workers for the industry; make the sector more attractive for local and foreign investors through ISO accreditation; answer the need for a set of consistent and timely delivered industry data; complement the implementation efforts of the BOC and DTI provincial standards monitoring teams; and help companies upgrade their capacities continuously.

01

About Iron and Steel

The Philippines sits on vast reserves of minerals, both metallic and non-metallic. Aside from gold and copper, the country is also rich in iron ore reserves of almost 300 million metric tons. To further promote investments in the mining of metals, the Philippine government allowed 100 percent foreign ownership of large-scale mines (subject to certain terms and conditions) in the hope of attracting quality operators and ensuring a steady output of metals. The rapid development of the Philippines and continuous growth of the Southeast Asian region has resulted in higher demand for iron and steel products domestically and regionally.  The Philippine economy has been performing beyond expectations over the past years, growing from 5.1% in 2011 to 6.8% in 2012, and to 7.2% in 2013. In this unprecedented growth, the construction sector is a major contributor driven by demand for private residential and office buildings and infrastructure spending by the government, which led to an upswing in demand for steel products. From 2010 to 2013, the country’s apparent steel consumption (ASC) increased from 4.1 to 6.6 million metric tons --- a consumption growth of 61% in three years. Philippine-based iron and steel manufacturers have expanded their production capacities in the long products sector, but still fall short of domestic demand, mainly because of the absence of an integrated steel mill (ISM). The flat products sector has no local production of hot rolled coils (HRC), hot rolled plates (HRP), and cold rolled coils (CRC), and all are currently imported. The availability of raw materials (i.e. iron ore) and semi-processed products (i.e. pig-iron) presents the opportunity for local iron and steel manufacturers to domestically source their input requirements and, more importantly, the possibility of establishing an ISM. Investing in the Philippines will provide iron and steel manufacturers better access to other ASEAN-member countries, which includes the big steel markets of Indonesia, Malaysia, Thailand, and Vietnam. The establishment of the ASEAN Economic Community (AEC) in 2015 will further facilitate the free flow of commodities across the region, including iron and steel.

02

Facts and Figures

Steel product lines locally produced
  • Semi-finished products: billets
  • Finished long products:
    • Reinforcing steel bars (all sizes)
    • Angle bars – 80mm and below
    • Light sections, channels and shapes
    • Steel wires
    • Steel purlins
  • Finished flat products:
    • Hot dipped galvanized sheets
    • Zn-Al coated sheets
    • Welded black iron pipes and tubes
    • Welded galvanized pipes and tubes
    • Pre-painted galvanized / Zn-Al coated coils and sheets
    • Pre-painted galvanized iron
  Apparent Steel Consumption (ASC), 2007-2012*
Particulars

2007

2008

2009

2010

2011

2012

Billets

1,744,265

1,554,497

1,941,799

2,219,998

2,311,252

2,543,855

Slabs

319,079

250,139

64,286

0

8,759

0

Long Products

2,201,216

2,179,056

2,263,840

2,774,510

3,123,520

3,851,836

Flat Products

2,101,690

2,032,120

1,646,936

1,748,877

2,517,381

3,180,740

Long and Flats Total

4,302,906

4,211,176

3,910,776

4,523,387

5,640,901

7,032,576

*In metric tons. | Sources: BOC, DTI, PISI, SEAISI, and industry sources   Trade Performance, 2004-2012*

2004

2005

2006

2007

2008

2009

2010

2011

2012

Exports

92

162

346

220

151

74

105

44

0

Imports

2,867

2,721

3,077

3,433

3,018

2,830

3,148

3,922

4,684

*In ‘000 metric tons. | Source: SEAISI

03

Roadmap

Roadmap

04

Policies

05

Programs

06

Champions

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