SteelAsia posts record output for the first 2 months of 2016
SteelAsia sales volume for the first two months of 2016 totalled 337,000 tons, including an all-time single month Philippine steel industry record of 170,868 in January. Sales output in January to February 2016 eclipsed the 2015 performance in the same period by 45%.
SteelAsia Vice President for Sales, Yvette Sy, attributed the jump to two factors: (1) the continued growth in the consumption of rebar; and, (2) the ramp-up of SteelAsia’s new capacity in Davao City and Phivdec, Misamis Oriental.
Rebar consumption has been growing since 2007 due to improved economic conditions spurring investment in residential development, office space (primarily BPO), power plant construction and mall and other mixed-used development. SteelAsia noted that rebar consumption grew by 15% in 2015 and is expected to continue its upward trend with another 11% increase in 2016. In the meantime, SteelAsia President Benjamin Yao is steadfast in his commitment to the Philippine government to increase capacity to meet the country’s needs. He said, “We will ensure that there is available steel for country development so that our growth momentum is not wasted, or stymied by a steel shortage.”
Production also hit record numbers in January to Febraury 2016. SteelAsia’s six mills produced a total of 318,000 tons - a record output in the Philippine steel industry. According to the company’s Vice President for Manufacturing, Prospero Repolona, the ramp up to 3-shifts of SteelAsia’s two newly commissioned Mindanao mills added the much needed output. The two mills increased output by over 60,000 tons – a 23% increase in production.
SteelAsia expects to hit 1.9 million tons of rebar sales and production by the end of 2016. While the numbers have been on an upturn, Yao noted that the Philippines hasn’t seen the expected infrastructure development, including the PPP (Private-Public Partnership). “Much of these projects lined up haven’t started, but will be full blast over the next five years,” Yao said.
“The Philippines needs at least 7 million tons of rebar capacity by that time, and right now we only have half of this. We need to build up steel manufacturing capacity,” he added.