Global Steel Philippines eyes Asian exports

MANILA, Philippines - Indian-owned Global Steel Philippines (SPV-AMC), Inc. (GSPI) will target other countries in the region for steel plate exports after opening its plate mill facilities in Iligan City. GSPI Vice-President Sangram Mohanty told reporters last week the company wanted to export to Vietnam, Korea, Indonesia and India before the year ends. The four countries import more than 700,000 metric tons of flat steel yearly, the company said. "It remains an exciting time for the plate manufacturers globally," Mr. Mohanty said, adding that the launch of the plate mill was in line with company strategy to rehabilitate the National Steel Corp. "The plate mill is part of the company’s dream to build an integrated steel plant," he added. Last year, Global Steel announced a plan to set up a $1.6-billion integrated steel plant that will make the Philippines independent as far as steel is concerned. The company said the country imports more than 72,000 metric tons per year of commercial-grade steel plates from China, Russia and the Ukraine. It gets high-tensile special-grade plates from Japan, Korea and Europe. Global Steel plans to produce 20,000 metric tons of plates per month and ramp up production gradually. "The company’s entry into the plate market is advantageous to consumers since this would benefit them in terms of competitive pricing, savings on freight cost and technical service without compromising quality," it said in a statement. Steel plates are used in construction equipment, shipping and drilling platforms, pipelines, tunnel supports, and excavator shovels. Mr. Mohanty did not say whether the company had increased steel prices, saying only that their price is cheaper. Global steel prices have gone up, affecting mostly property developers. According to UK-based MEPS International Ltd., an independent supplier of steel market information, steel prices as of April stood at $1,065 per metric ton compared with $788 a month earlier. Aside from the plate mill, the company is also launching its tinning line by yearend. The tinning line will produce tin plates used for soft drink caps. The company also said it would venture into mining and power to look for potential iron ores that will make the integrated steel plant a reality. Global Steel is the country’s largest steel manufacturer that exports 70% of its production. Its parent company, Global Steel Holdings Limited, has more than 14 million tons of steel production capacity per year. — BusinessWorld