Salvio D. Perez, vice president and general manager of Puyat Steel Mills and president of the Filipino Galvanizers Institute (FGI), noted that foreign steel mills, particularly in Japan, Korea, Taiwan and China have drastically cut back their production and export volumes of flat steel products to other countries, including the Philippines.
"Some of the local galvanizers’ booked orders for cold rolled coils have been cancelled by some mills and what is disturbing is that they are not even offering any price quotations for shipment orders for May, June and July," Perez added.
The situation may result in a shortfall in the supply of GI sheets in the market, if not in the increase in the price of GI sheets, or worse, the shutdown of local GI sheets plants, Perez said.
Prices of cold rolled coils, the raw materials used by GI sheet manufacturers, have also increased drastically by as much as 40 percent or $100 per metric ton since February this year.
Perez lamented that this very tight supply situation and spiraling prices of imported CRC and HRC is happening in the middle of the construction months of summer when the demand for GI sheet materials is at its peak.
Perez noted that the current inventory of GI sheet products are unusually low at this time of the year.