The Philippine steel industry remains cautiously optimistic despite slowing construction activity, pinning its long-term growth hopes on the government’s infrastructure pipeline and a long-awaited industry roadmap aimed at strengthening domestic manufacturing.
Ronald Magsajo, chairman of the South East Asia Iron and Steel Institute (SEAISI) and president of the ASEAN Iron and Steel Council (AISC), said steel demand continues to move in lockstep with economic growth, with construction accounting for more than 80 percent of local consumption.
“Historically, when GDP grows, the steel industry grows. The other key driver is construction,” Magsajo said, noting that weaker building permit applications and slower infrastructure spending have softened demand in recent months.
The slowdown, however, is seen as temporary.
Magsajo said the eventual rollout of major government infrastructure projects, particularly flood-control works, should revive construction activity and provide a fresh lift to steel demand.
“The purpose of these projects is important and they need to be done. If they move forward, construction activity will increase, and steel is one of the sectors that will benefit,” he said.
Beyond the near-term outlook, the industry is looking to a steel roadmap, expected within the next year, to chart its growth through 2040. The strategy is expected to boost local manufacturing, reduce reliance on imports and align investments with the country’s expanding infrastructure and industrial needs.
The roadmap comes as the industry seeks to close major supply gaps. While local manufacturers already meet about 90 percent of domestic rebar demand, the Philippines still imports most of its flat steel products, H-beams, wire rods and roofing materials.
New steel mills being developed in Batangas and Quezon are expected to begin producing structural steel locally, allowing the country to substitute more imports and improve supply security as demand rises.
The sector is also positioning itself for a lower-carbon future. Industry players are investing in green steel technologies, expanding recycling efforts and increasing the use of renewable energy as global markets place greater emphasis on sustainable production.
For the steel industry, the challenge extends beyond riding out today’s construction slowdown. The bigger opportunity lies in ensuring the country has the manufacturing capacity to support the next wave of infrastructure spending, industrialization and urban development.
If public infrastructure spending regains momentum as expected, the industry believes steel demand will follow, reinforcing its role as one of the economy’s most reliable barometers of growth.
