Steel industry sees rebound as infra spending resumes
‘Our encouragement is to fund and start these anomaly-free constructions so the country can move forward.’
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Daily Tribune‘Our encouragement is to fund and start these anomaly-free constructions so the country can move forward.’
The country’s steel industry has welcomed the pronouncement of Malacañang and the Department of Budget and Management to resume spending for various infrastructure projects stalled at the height of the corruption scandal involving billions of government funds.
Last week, President Ferdinand Marcos Jr. said that they will include the stalled flood control and other infrastructure projects in the National Expenditure Program for 2027, as these developments need to be finished because the lives and livelihoods of Filipinos are at stake during typhoon season due to massive flooding.
“That’s a good thing. In my personal view, even if there is still controversy on the flood control, these projects should continue, as the purpose of the flood control is to prevent floods. And if these projects are done properly and cleanly, then there is a boost in the construction industry, as well as the steel and cement industries. There will also be productivity and economic movement,” said Ronald Magsajo, chairman of the South East Asia Iron and Steel Institute and president of the ASEAN Iron and Steel Council, in a media interview.
“Our encouragement is to fund and start these anomaly-free constructions so the country can move forward. Because during the halt of the infrastructure projects, one of the industries affected mainly is the steel industry,” Magsajo stressed.
The Marcos administration expects the resumption of infrastructure activities to contribute to economic expansion after several projects experienced delays amid the government’s review of flood control and other public works programs.
President Marcos earlier directed concerned agencies to facilitate the release of funds for ongoing infrastructure projects to ensure their timely completion and to sustain economic activity across the country.
The move comes as the government seeks to strengthen growth drivers following a slower-than-expected economic performance in the first quarter of 2026.
The Philippine economy also faced challenges during the period, including elevated oil prices, inflationary pressures, and uncertainties in the global economic environment.
Government economic managers initially projected gross domestic product (GDP) growth of 5 to 6 percent for 2026 but revised the target range to 3.5 to 4.5 percent in June. Castro cited a statement from Department of Budget and Management (DBM) Secretary Kim de Leon, who said that recent domestic and external developments, including geopolitical uncertainties and efforts to improve governance and the quality of infrastructure implementation, require a calibrated policy response.
According to the DBM, the government remains committed to pursuing strategic and high-quality public investments supported by stronger project preparation, integrated infrastructure planning, and improved budget execution.
The resumption of infrastructure activities follows the government’s intensified review of flood control projects after concerns were raised over alleged irregularities involving so-called “ghost” flood control projects.
The review prompted agencies to reassess ongoing and proposed projects, resulting in temporary disruptions in some construction activities.
Government officials, however, said measures are now being undertaken to resume legitimate projects while ensuring transparency and accountability in public spending.
Roadmap
Magsajo stated that government projects require 50 percent public and 50 percent private in terms of steel utilization, but the local steel producers can sustain these requirements.
“In terms of supply, we can provide. There is no problem with that. We can supply bars. However, the only problem is with roofing, as roofing sheets are mainly imported. That is why we formulated a roadmap to revitalize the roofing industry,” he said.
Earlier, Philippine Iron and Steel Institute president Joel Ronquillo said they are already finalizing a revised industry roadmap to drive growth, green steel initiatives and new product development.
Ronquillo said the revisions were made in response to a directive from President Ferdinand Marcos Jr. for an updated industry plan.
He said the new steel industry blueprint revises the initial steel plan submitted in previous years and is expected to be released by 2026.
The roadmap states that the country’s iron and steel Industry seeks to contribute to the country’s sustainable development by manufacturing world-class products for industry and society.
“By 2030, the Philippine iron and steel Industry sees itself as a majority producer of quality steel products for domestic users. This vision can be achieved when the industry can supply 70 percent of the tonnage of required apparent steel consumption for sustainable economic development in 2030,” the Roadmap’s draft read.
One measure of the significance of the iron and steel industry to the whole economy is the multiplier effects of raising the output and investment in the sector.
