philippines country report presented by: joel t. ronquillo philippine iron and steel institute 2011...
DESCRIPTION
GROSS DOMESTIC PRODUCT Agriculture, Fishery and Forestry3.10(0.5) Industry4.9(0.9)12.1 Mining and Quarrying Manufacturing4.2(4.4)12.3 Construction Electricity, Gas and Water7.3(2.9)8.5 Services Transport, Comm., Storage Trade Finance Ownership of Dwelling and Real Estate5.8(0.3)6.8 Private Services Government Services GDP Growth by Sector,TRANSCRIPT
PhilippinesCOUNTRY REPORT
Presented by: JOEL T. RONQUILLOPhilippine Iron and Steel Institute
2011 SEAISI Economic, Environmental & Safety Seminar
Nov. 21-22, 2011 • Hotel Istana, Kuala Lumpur City Centre, Malaysia
• Government forecasted a 7-8% GDP growth in 2011.
• GDP posted a 7.3% growth in 2010.
ECONOMIC UPDATES:
• Apparent steel consumption growth of 14% (4.02M tons in 2010 vs 3.53M tons in 2009).
• World steel demand is projected to be 1,340 million tons in 2011 (an increase of 5.30% from 2010).
2008 2009 2010GROSS DOMESTIC PRODUCT 3.7 1.1 7.3Agriculture, Fishery and Forestry 3.1 0 (0.5)Industry 4.9 (0.9) 12.1
Mining and Quarrying 1.9 21.5 18.4 Manufacturing 4.2 (4.4) 12.3 Construction 7.6 9.8 10.5 Electricity, Gas and Water 7.3 (2.9) 8.5
Services 3.1 2.8 7.1 Transport, Comm., Storage 4.2 0.6 1.9 Trade 1.2 1 10.7 Finance 2.5 5.9 6.5 Ownership of Dwelling and Real Estate 5.8 (0.3) 6.8
Private Services 4.9 6.4 8.8 Government Services 3 6.1 1.7
GDP Growth by Sector, 2008-2010
Performance of the Steel Industry in 2010
Apparent steel consumption reached 4.02 million MT in 2010, growing by 14% compared to 3.53
million MT in 2009.Apparent Steel C onsumption (1990-2010)
In Million Metric Tons
4.2
3.03.3
3.03.3
3.73.5
3.1 3.1 3.13.4 3.3 3.5
4.0
2.5
1.7 1.9 2.02.5
3.4
4.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
mill
ion
met
ric to
ns
1% 4%
81%
14%
Construction
Light & Heavy FabricationOthers Packaging
2009
14%
81%
4%1%
Construction
Light & Heavy FabricationOthers
Packaging
2010
Comparative Steel Demand
Summary of Key Steel Statistics
In Metric Tons Yr-Yr2010 2009 Change
CRUDE STEEL PRODUCTION 1,235,294 969,412 27%
FINISHED STEEL PRODUCTION 2,762,221 2,773,736 (0.4%)
FINISHED STEEL IMPORT 1,989,442 1,711,016 16%
FINISHED STEEL EXPORT 104,836 73,768 42%
APPARENT STEEL CONSUMPTIONAdjusted for double counting
4,017,118 3,530,034 14%
Apparent Consumption:SEMI-FINISHED STEEL
In Metric Tons Yr-Yr2010 2009 Change
BILLETSProduction 1,050,000 824,000 27%Import 1,169,998 1,117,789 5%Export - -Apparent Consumption 2,219,998 1,941,789 14%
SLABSProduction - -Import 64,286 (100%)Export - -Apparent Consumption - 64,286 (100%)
Sources: Bureau of Customs (BOC), Department of Trade and Industry (DTI) and Industry Sources
Apparent Consumption:FINISHED STEEL
In Metric Tons Yr-Yr2010 2009 Change
LONG PRODUCTSProduction12 2,132,512 1,790,724 19%Import 642,827 465,285 38%Export 829 320 159%Apparent Consumption 2,774,510 2,255,689 23%
FLAT PRODUCTSProduction1 0 102,062 (100%)Import 1,346,615 1,245,731 8%Export 104,006 73,448 42%Apparent Consumption 1,242,609 1,274,345 (2%)
1 Covers hot rolled products only in order to avoid double counting 2 Excludes bar products converted from wire rods
Sources: Bureau of Customs (BOC), Department of Trade and Industry (DTI) and Industry Sources
Breakdown of Finished Steel Production
in MT (2010 vs. 2009)In Metric Tons Yr-Yr
2010 2009 Change LONG PRODUCTS 2,508,218 2,216,500 13% Bars1 2,092,548 1,848,469 13% Shapes and Sections1 201,074 179,065 12% Wires 214,596 188,966 14%FLAT PRODUCTS 254,003 557,236 (54%) Hot Rolled Coils - 102,062 (100%) Cold Rolled Coils 5,552 104,477 (95%) GI/Pre-painted/Zn-Al Coated Sheets
198,095 293,179 (32%)
Pipes and Tubes2 50,356 57,518 (12%)Source: Industry Sources
1 Includes bar products converted from wire rods2 2009 figures are revised due to new available information
Breakdown of Finished Steel Imports
in MT (2010 vs. 2009)In Metric Tons Yr-Yr 2010 2009 ChangeLong Products 642,827 465,285 38%
Wire Rods 336,854 337,730 0%Bars 54,831 21,722 152%Shapes and Sections 189,771 56,328 237%Sheet Piles 29,946 10,434 187%Wires 12,503 23,306 (46%)Rails 2,174 2,464 (12%)Others (Alloy & Stainless Steels) 16,748 13,301 26%
Flat Products 1,346,615 1,245,731 8%Plates 275,587 326,804 (16%)Hot Rolled Coils/Sheets 214,908 277,742 (23%)Cold Rolled Coils/Sheets 292,648 211,257 39%GI Sheets/ Pre-painted/Zn-Al 231,116 150,791 53%Tinplates/TFS 188,190 151,263 24%Pipes and Tubes 121,781 98,632 23%Others (Alloy & Stainless Steels) 22,385 29,242 (23%)
Sources: Bureau of Customs (BOC), Department of Trade and Industry (DTI) and Industry Sources
Breakdown of Finished Steel Exports
in MT (2010 vs. 2009)In Metric Tons Yr-Yr
2010 2009 ChangeBars / Sections 465 189 146%Wires 364 130 180%Hot Rolled Coils/Sheets 21,795 12,647 72%Cold Rolled Coils/Sheets 24,695 20,671 19%GI Sheets/ Pre-painted/Zn-Al 40,839 37,034 10%Pipes and Tubes 16,678 3,096 439%TOTAL 104,836 73,768 42%
Source: National Statistics Office
Steel ProjectsCOMPANY LOCATION DESCRIPTION STATUS
TKC Steel ILigan City(Mindanao)
New installation1st Blast Furnace400,000 mtpy
On-going testing operation
New installation2nd Blast Furnace400,000 mtpy
On-going installationCommissioning - 3Q 2012
New Carcar Manufacturing Corp.
Davao City(Mindanao)
New capacity Bar rolling mill 400,000 mtpy
Start of construction - 3Q 2011Commissioning - 4Q 2012
Cebu (Visayas)
New capacityEAF to produce billets400,000 mtpy
On-going planningCommercial operation- Jan 2014
La Union (Luzon)
New capacityEAF to produce billets 400,000 mtpy
On-going planningCommercial operation- Jan 2014
Davao del Norte (Mindanao)
New capacityEAF to produce billets 400,000 mtpy
On-going planning Commercial operation - Jan 2014
Source: Industry Sources
ENVIRONMENTAL UPDATES:• 20% drop of total suspended particulates (TSP) for
the first quarter of 2011 at 131 µg/Ncm as against 163 µg/Ncm for the same period of 2010.
• TSP levels recorded for the third quarter of 2011 went down further at 120 µg/Ncm.
• 25% drop of TSP for the second quarter of 2011 at 125 µg/Ncm as against 166 µg/Ncm for the same period of 2010.
ENVIRONMENTAL UPDATES:
• Proposal from DENR to use EURO IV fuels by Jan. 01, 2016 for all new passenger and light duty motor vehicle types.
• Issues on the proposed DENR Administrative Order regarding oxygen correction factors and emission averaging and guidelines for employing the emission averaging approach for compliance purposes.
Thank You for
your attention!