Posted on 29 Dec 2014
The Philippine steel sector expects a 15-percent growth in 2015, on expectations of more construction activities.
"The steel sector in terms of construction, I think would still be very busy. The prices of steel are coming down. In terms of demand, it will go further. more people are planning real estate [projects]," said Jimmy Chan, Philippine Exporters Confederation Inc. trustee for the metals sector.
Chan said the growth of other sectors related to steel would also continue to be robust next year.
"The growth is basically consumer-oriented... We are a very consumer-oriented economy," he said.
Chan said the potential for growth of the automotive companies would also boost the domestic steel market while private and public infrastructures in the pipeline would generate strong demand for steel products.
"The world economy is now slowing down so we really don't know if it will have any effect to the local demand. As you know, most of our demand is generated from remittances that come in to the country," he added.
The Philippines steel industry is estimated at 6.7 million MT, with imported steel accounting for 3.67 million MT.
Demand was expected to grow 5 percent to 7 percent in 2014, after rising 8 percent in 2013. Domestic production of billets and rebars grew 4 percent in 2013.
Domestic demand for rebars reached 2.7 million metric tons in 2013, a figure that was expected to grow 6 percent to 7 percent annually, on strong demand from the construction sector.
Forty percent of the steel industry is comprised of flat products and 60 percent by long products.
Flat products include slabs, hot-rolled coil, cold-rolled coil, coated steel products, tinplate and heavy plate used in automotive, heavy machinery, pipes and tubes, construction, packaging and appliances.
Long products are mostly billets, blooms, rebars, wire rod, sections, rails, sheet piles and drawn wire which are used for construction, mechanical engineering, energy and automotive.
Long products produced locally are pipes and tubes as well as some nails and wires from imported wire rods.
