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Metals and Metal Processing

The Philippine iron and steel 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 to 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.

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300 Million Metric Tons of Iron Ore Reserves

The Philippines is rich in iron ore reserves of almost 300 million metric tons.

Source: DTI

PHP131.66 Million production value

The iron ore production value is estimated to be 131.66 million Philippine pesos.

Source: DENR-MGB

High growth potential

The growth potential of the Philippine steel industry is seen in its steel consumption of 63kg/capita compared to the world average of 225kg/capita.

Source: BOI

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. [190] On iron ore, production volume and value increased to 44,133 dry metric tons with an estimated value of 131.66 million Philippine pesos in the first quarter of 2022. [191]

The Philippine iron and steel 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. [190]

The steel product lines locally produced are categorized into three: semi-finished products like billets; the finished long products like light sections, channels and shapes, reinforcing steel bars (all sizes), angle bars, steel wires, steel purlins and steel rods are used by the domestic construction sector; and the finished flat products are plates, hot-rolled sheets and strips, cold-rolled sheets and strips, tin plates, other metallic-coated sheets, welded or galvanized black iron pipes and tubes. [190]

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. The Philippine iron and steel industry is a critical component in achieving inclusive economic growth and sustainable development. [190]

Opportunities and
advantages

  • 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. [190] Growth in public spending for infrastructure and private construction spending will boost demand for iron and steel products. [192]

  • 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. [190]

  • The Philippines has a quality human resource, strategically located in Asia, has reliable infrastructure support, competitive investment incentives, and deregulation of industries. The government has open market economy reforms, supports R&D for product development, gives incentives to encourage iron making facilities and flat products manufacturing, gives incentives to modernize and rehabilitate facilities, has strict enforcement of customs laws and technical regulations, and discourages export of iron ore and scrap iron. [192]

  • Other opportunities and advantages of the industry are excellent Philippine economic growth prospects and improving credit investment rating, unserved actual demand in infrastructure, shipbuilding, tinplates, etc., idle steel capacities for possible reactivation & rehabilitation, emerging investment opportunities in upstream or downstream industries wherein local businessmen and foreign investors can partner in to enter the sector’s value chain, a growing number of workers and engineers, and reconstructions of buildings, and the manufacturing resurgence program through the industry roadmaps will attract more investments into downstream industries like appliances, ships and shipbuilding, and auto parts. The surge of public-private partnerships in infrastructure development, expansion growth in the real estate industry and the housing industry, and the emergence of the shipbuilding industry will intensify demand for iron and steel products. [192]

New Product Opportunities

Articles for sewing of iron or steel

HS Code
7319 HS4

Wire of other alloy steel

HS Code
7229 HS4

Tin bars and wire

HS Code
8003 HS4

Featured Companies

  • SteelAsia Manufacturing Corporation SteelAsia is a company born out of a partnership that started in 1965. Filipino businessmen Benito Yao and Go Kim Pah, joined forces to put up a rolling mill called Island Metal. The small rebar facility would eventually bloom into one the world’s largest and most modern rebar manufacturing companies today. In the late 1980s, under the leadership of successor Benjamin Yao, the company would embark on an expansion and modernization of its manufacturing capability, as a platform for helping the Philippine steel industry to become part of the solution. In 1994, a project to establish the Philippines’ first state-of-the-art steel bar rolling mill was underway. Driving the endeavor, the SteelAsia Manufacturing Corporation had envisioned a facility that would truly be a national asset; world class steel products and services would lower the cost of construction, and help spur economic growth. Around one out of every two steel bars installed in construction are manufactured by SteelAsia. More than 80% of the steel bar requirements for land, air, sea, power and communications infrastructure are supplied by SteelAsia. It is the preferred supplier of the largest contractors and property developers in the Philippines. It is vertically integrated both upstream and downstream, having the largest and most modern steel billet making facility and the largest rebar fabrication plant in the country. Already with 6 plants operating across the archipelago, it is adding two more-among the world’s largest and most modern steel bar mills, to meet the needs of today’s unprecedented economic growth. [193]

  • Puyat Steel Corporation Puyat Steel was established in 1956 by Gonzalo Puyat. The company set-up the first galvanizing plant in the Philippines as an answer to the need of the country for galvanized iron sheets to be used in construction, building and roofing materials. The pioneering efforts in sheet galvanizing and establishment of Puyat Steel not only contributed to the industrialization program of the Philippine government but also saved the country much needed foreign exchange. [194] The company’s products are all Philippine made, from metal & steel roofs used in home, office or warehouse, to APO® Galfan steel coils and sheets used in construction, decking, air-conditioning and other industries. Puyat Steel commissioned the first NOF-CGL equipment in the Philippines producing world-class quality galvanized products with those found in Japan, Korea, Taiwan, and the United States. [194] The N.O.F. process is non-polluting because it meets environmental protection standards of developed countries. Their plant facility located in Batangas is fully automated, computer-controlled and practically controls the whole galvanizing process. The company’s continuing commitment towards providing quality products and services did not go unnoticed as it was conferred the distinction of being the Outstanding Manufacturer of G.I. & Prepainted G.I. Sheets and Coils for the year 2002-2004 by the Consumer Union of the Philippines. [194]

  • PASAR The Philippine Associated Smelting and Refining (PASAR) Corporation is a Glencore managed company that processes and exports refined copper and precious metal by-products of international standards located in Isabel, Leyte. PASAR is the only copper smelter and refinery in the Philippines and the first in Southeast Asia. Established in 1983, they are a leader in the processing and exporting of refined copper and precious metal by-products such as gold and silver. [196]. They operate using state-of-the-art facilities and equipment and maintaining a high standard of compliance in terms of environment protection, safety practices and community relations. Following the values in ensuring they produce high-grade copper cathode and other precious metal by-products, PASAR is one of the leaders in processing and exporting in the country. They are compliant with regulatory requirements and industry standards. Their products are currently being exported into 18 countries across the globe.

  • PNS Advanced Steel Technology, Inc. PNS Advanced Steel Technology, Inc. (PNS ASTech) is a joint venture merging both the Japanese and Philippine technologies. The major shareholder is the Nippon Steel Engineering Co., Ltd. It was established in 2013 and its headquarter is in Makati City, Manila. PNS ASTech provides special steel structures for building & civil engineering constructions. The company makes use of the excellent and resilient features of steel, provides molded steel structures, creates large span constructions in design structures and high-rise architectures and uses technologies that are primarily developed in Japan, such as earthquake-resistant dampers, unbonded brace, and seismic isolation technology that are applicable to the Philippine architectural and civil engineering structures. The company continues to conduct research, developments and products that will cater to issues such as the use of earthquake-resistant technology. These additions to the existing buildings or new buildings make the structures safer. In line with the menu, pre-engineered building and bridge products should be placed focused on the short construction period, steel piles which pursue not only having high and additional features but also reducing impacts on the environment. PNS ASTech also handles disaster prevention products for civil engineering that are developed by the Nippon Steel and Sumitomo Metal Group. [197]

Sources

[190] Philippine Iron and Steel Institute & Board of Investments. (n.d.). Iron and Steel. Securing The Future of Philippine Industries.

https://industry.gov.ph/industry/iron-and-steel/

[191] Philippine Resources. (2022, June 1). METALLIC PRODUCTION VALUE KICKS OFF 2022 WITH A 36.21% GROWTH.

https://www.philippine-resources.com/articles/2022/6/metallic-production-value-kicks-off-2022-with-a-36-21-growth

[192] Manufacturing Industries Services, Heavy Industries Division, & Board of Investments. (2018, February 28). Iron and Steel | Board of Investments. BOI Gov Ph.

https://boi.gov.ph/sdm_downloads/iron-and-steel/

[193] SteelAsia Manufacturing Corporation. (n.d.). Company History.

https://www.steelasia.com/company/company-history

[194] Puyat Steel Corporation. (2020, February 4). Puyat Steel Corporation - The Company.

https://puyatsteel.com/the-company/

[195] Philmetal Products, Inc. (2022, April 21). Who we are - Philmetal Products, Inc. Philmetal Products, Inc - Philippines’ Leading Building Products Manufacturer of Pre-Painted Roofing Colorbond, Steeldek Decking, Galvaframe Wall Framing System.

http://www.v2.philmetal.com.ph/about_us/

[196] Philmetal Products, Inc. (2022b, April 29). Philmetal Products, Inc - Roofing Cladding Decking Framing. Philmetal Products, Inc - Philippines’ Leading Building Products Manufacturer of Pre-Painted Roofing Colorbond, Steeldek Decking, Galvaframe Wall Framing System.

https://v2.philmetal.com.ph/

[197] PNS Advanced Steel Technology, Inc. (n.d.). PNS ASTech.

https://www.pnsastech.com.ph/about-us.php