Aggressive infrastructure development in the Philippines has encouraged local steelmakers to push ahead with capacity expansion plans, with the country's largest steelmaker, Asian Steel Manufacturing, a major contributor. Like other Asian countries with strong consumption growth, the Philippines has also attracted investors from China.
Asian Steel said that the new crown pneumonia epidemic that began in late 2019 affected the development of the steel industry for two years. With the easing of the epidemic in the Philippines, all of the company's factories are currently operating and many new orders have been received. However, due to the unfavorable economic environment during the new crown pneumonia epidemic in 2021, the large-scale expansion plan of Asian Steel was previously put on hold. Recently, the company has announced the construction of electric arc furnace melting plants in Mercavayan, Compostela, Concepcion, Davao, Lemery and Villanueva. Taken together, Asia Steel's mid- to long-term steelmaking capacity may increase by more than 4 million tons per year. The producer plans to install long-rolling lines with a combined capacity of more than 7 million tonnes/year at most of the aforementioned locations, as well as in Kalkar, Candelaria and Negros Island. By the end of this year, Asian Steel plans to commission a 1m t/y rebar plant at Kaka's Cebu plant.
Global ferronickel holding company plans to start commercial production of rebar in 2022 at a new plant in the Philippine province of Bataan, as the company hopes to enter the steel market. With the growing demand for steel driven by infrastructure development in the Philippines, the company decided to build a rebar mill, and in 2019 jointly launched the 600,000-ton/year rebar rolling mill with Hong Kong Huarong Asia Co., Ltd. construction project.
Taken together, the Philippines has the opportunity to increase its long-rolling capacity by 1.6 million t/y and add 200,000 t/y of tinplate capacity in 2022.
