Overview of the Steel Industry in Philippines and How to Buy Steel
Brief Introduction of Philippines
- Philippines has a population of 108.1 million.
- Capital: Manila
- Official languages: Filipino and English
- Total area: 300,000 km2
- Currency: Philippine peso
Economy of Philippines
Philippines is the 13th largest economy in Asia. Philippines has a GDP of $376.8 billion. The largest industries of the Philippines are:
- Manufacturing
- Mining and mineral processing
- Ship building
- Electronics
- Semiconductors
- Agriculture
- Transportation
- Construction
The Philippines economy is divided into
- Services: 61% of GDP
- Agriculture: 8.82% of GDP
- Industry: 30.17% of GDP (approximately)
The main importers of Philippines goods are:
- Hong Kong: 14.2% of total Philippine exports
- United States: 14.1%
- China: 13.6%
- Japan: 11.5%
- Singapore: 8.1%
- Germany: 5.07%
The main exporters to Philippines are:
- China: 24%
- South Korea: 9.34%
- Japan: 8.61%
- Chinese Taipei: 7.56%
- United States: 6.8%
- Thailand: 6.14%
Steel Use in Philippines
Given the economic growth of the Philippines, it is an attractive country for steel trade. Philippines steel industry is diverse and includes steel mainly for construction, but many others as well. The Philippines uses long steel products, imported wire rods, and flat steel products in their industries.
Long Products
This type of steel involves billets that get rolled into bars or shapes/sections. The bars mainly get used in their industries including construction, manufacturing, and machinery. The shapes/sections mainly get used in construction and fabrication.
Imported Wire Rods
Once imported, the Philippines uses the steel wire rods mainly to produce nails, wire, and fasteners.
Flat Products
Cold rolled and hot rolled processes can be used for this type of steel. In hot rolling, they either produce hot rolled plates or hot rolled coils. The Philippines uses the plates for shipbuilding or pipes. They use the hot rolled coils mainly for pipes/tubes, construction, fabrication, or hardware. Their cold rolling process involves cold rolled coils or tin mill plates. The cold rolled coils are used in fabrication, or it goes through a galvanizing process, forming GI/PPGI sheets that are then used in construction, fabrication, appliance, and hardware. The tin mill plates go through a tinning line and are used in the can making production.
Philippines Sea Ports and Trading
Indonesia is accessible by both land and sea. For international trading, the main sea ports are:
- Port of Manila
- Port of Cebu
- Batangas International Port
- Port of Subic
- Port of Cagayan de Oro
For importing steel, Camasteel uses the largest port of Manila.
What Steel does Philippines import?
According to the latest trade data, Philippines imports from over 50 countries. They receive over 100,000 metric tons of steel imports from each of their top contributors, some including
- China
- Russia
- Japan
- Taiwan
- Vietnam
Each year, the Philippines imports about
- 3 million metric tons of flat steel products (33% of imports)
- 2.5 million metric tons of long steel products (24%)
- 400 thousand metric tons of pipe and tube steel products (5%)
- 3.5 million metric tons of semi-finished steel products (37%)
- 65 thousand metric tons of stainless steel products (1%)
The specific types of steel that the Philippines imports includes:
What regulations are there on importing steel in Philippines?
In order to import in the Philippines, there is certain required documentation. These include documentation by the carrier of the aircraft or ship, certificate of origin, document to verify payment. In addition, an import permit is required and the authority to release the imported goods into the country. Upon import, it is likely that the goods will be inspected before the ability to be released.
Why should Philippines import steel?
1. Availability - The Philippines is the 17th largest steel importer in the world. They import a large quantity of steel each year and are usually in high demand for steel. It is important that they import steel because their production does not have the capacity to produce the needs of their demand.
2. Steel Cost – Given competition and high production costs, it would be more expensive for the Philippines to create more capacity for steel production than importing from other countries around the world.
3. Steel Quality – Philippines is taking better precaution in purchasing high-quality steel from reliable companies when importing is necessary.
Where can I buy steel in Philippines?
In If you’re looking to buy small amounts of steel, there are local options more available for convenience. However, if you are looking to import in bulk and achieve cost savings, Camasteel has been exporting steel to clients in the Philippines. Feel free to contact us at [email protected] or WhatsApp us at +86-131-2037-9271 for a FREE quotation.
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