Philippines Steel Manufacturing
The Philippines’ push to expand domestic steel production and reduce reliance on imports is creating sustained demand for U.S. ferrous scrap, steelmaking equipment, and advanced industrial technologies, aligning commercial opportunities with U.S. supply-chain resilience and regional infrastructure objectives.
The Philippines steel industry is entering a pivotal expansion phase. Rapid demand growth, new investments, and a desire to cut dependence on imported finished steel are reshaping the market. Industry estimates place steel consumption at approximately 10 million metric tons , among one of the fastest growth rates in Southeast Asia. Despite this strong demand, domestic production remains limited as the Philippines imports roughly 7-7.5 million metric tons of steel annually. Philippines government officials and business contacts view this external dependence as an economic vulnerability exposing the economy to price swings and supply disruptions, prompting public-private collaboration to expand domestic capacity.
Infrastructure development is a major demand driver. Large programs in roads, rail, mass transit, ports, bridges, airports, and flood-control systems require substantial volumes of reinforcing bars, structural sections, wire rods, and plates. Demand is expected to increase further as the Philippines works with international partners, including the United States, to upgrade transportation and industrial assets in the Luzon Economic Corridor (LEC), a U.S.-supported initiative to catalyze investment across Luzon. Closing the supply gap will require new and upgraded mills that need sophisticated machinery, modern processing lines, as well as high-quality scrap metal—inputs that U.S. firms are well positioned to provide.
SteelAsia Manufacturing Corp., the country’s largest steel producer, sits at the center of this transformation. SteelAsia operates mills in Bulacan, Batangas, Cebu, and Davao with about 3 million metric tons of rolling capacity and roughly 500,000 metric tons of crude steel output per year. The company is implementing a $1.1 -$1.4 billion (₱65-₱82 billion) investment program, including new and upgraded facilities in Batangas, Quezon, Tarlac, and Davao. These projects will add or expand capabilities in heavy structural sections, H- and I-beams, sheet piles, wire rods, and plates—products that have relied heavily on imports. A flagship heavy structural mill in Candelaria is designed to produce more than 1 million metric tons annually and replace most of the country’s imports of heavy structural products. Across its program, SteelAsia expects to significantly expand rolling capacity over the coming years , and increase crude-steel output to nearly 2.75 million metric tons.
Global steelmaking is increasingly adopting electric-arc furnace (EAF) technology, which uses scrap steel and differs materially from traditional blast furnaces. The Philippines aims to incorporate more EAF-based production into its long-term industrial strategy. Local scrap metal volumes are not sufficient to support large-scale operations, ensuring continued demand for imported scrap as new facilities come online. Demand for high-quality, well-sorted scrap is therefore expected to rise substantially, positioning the United States—one of the world’s largest and most reliable suppliers of ferrous scrap with strong quality controls and a mature processing industry—as a key partner.
Modernization of the Philippine steel sector will also drive demand for advanced equipment and industrial technologies. New mills will require EAF, billet casters, rolling mills, dust-collection systems, waste-heat recovery units, and automation platforms, areas which U.S. companies have strong technical advantages. Philippine steel growth is unlikely to threaten U.S. producers, as the country does not make the flat products, coated steels, and high-value alloys that account for most U.S. exports and will remain a net importer of specialized grades. Instead, Philippine steel growth creates a durable market for U.S. scrap, machinery, and technologies and supports U.S. objectives related to supply-chain diversification and regional stability.
U.S. companies interested in supplying scrap metal, steelmaking equipment, advanced technologies, or industrial services to the Philippine steel sector are encouraged to contact Sophia Ordoña, Commercial Specialist, at U.S. Commercial Service Manila at email: Sophia.Ordona@trade.gov for additional market guidance and engagement opportunities.