The Philippine Department of Trade and Industry has decided to defer any action on the petition to ban the export of scrap metals pending the completion of an inquiry being conducted by the House of Representatives.
The DTI announced that it would make a policy decision whether or not to ban the export of metal scraps as soon as the House Committee on Trade and Industry releases the results of an ongoing study on the impact of such action.
The House has decided to establish a technical working group to conduct an in-depth study on the state of the local metal scrap industry and how such ban could affect both metal scrap users and the steel-making industries.
The committee began public hearings on the planned ban on the exports of scrap metals last August. This after consumers of the material urged the DTI to impose a ban on the export of scrap metals due to possible shortages that could arise for local users. The group warned that several companies would shut down, resulting in massive loss of jobs.
On the other hand, scrap dealers through the Scrap Collectors and Recycler Association of the Philippines complained that low prices and delayed payments from local customers were forcing them to sell scrap metal abroad.
The DTI and the Board of Investments tried to mediate the dispute but failed to forge a compromise agreement between the two parties. The supposed compromise would ensure an adequate supply of locally generated scrap to local industries without necessarily putting the scrap suppliers at a disadvantage.
The agreement did not materialize as both parties failed to agree on several issues such as pricing, payment terms, stable demand and supply and quality of scrap.
Statistics from the National Statistics Office showed that earnings from the shipment of ferrous and nonferrous waste and scraps rose to $55.73 million last year from only $35.93 million. The volume also grew to 159.41 million kilos from 31.34 million kilos.
In the first five months of the year about $11.5 million worth of scrap metals were exported from the Philippines. Major markets of scrap metal include Korea and Taiwan.