NSC imported slabs and HRCs, aside from TMBPs, on spot market basis from different suppliers.
NSC slabs came from China (Baosteel, Pangang, Anshan, Angang, Jinan, Panzhihua, Wugang, and Wuhan) South Korea (Posco), Brazil (CST), Australia (BHP), Mexico (IMEXSA) and Russia (NMK, MMK, Ilych).
NMK, Ilych Steel, Anshan, POSCO, IMEXSA, CST, and later Australia’s BHP, also supplied NSC with Hot-rolled coils. Japan’s Nippon Steel, Australia’s BHP and South Korea’s POSCO) supplied tin-milled black-plates (TMBPs).
Figure 25: NSC Raw Material Imports, 1991-2004 Data Source: NSC
Figure 25 graphically show that slabs imported by the privatized NSC declined prior to the Asian Financial Crises 1997-98.
The HRCs imported by NSC remarkably decreased in 1995 when it brought Hot Strip Mill No. 2 into commercial operations, thus imported slabs increased until 1996. Although, NSC’s attempt for slab supply agreements with its various suppliers was frustrated in 1997, Hottick management was hopeful that these would be completed as soon as the world steel industry recovers from the effects of the crisis. Furthermore, importation of TMBPs declined starting 1992, when NSC closed its last tinning mill in Pasig to concentrate on its newly installed ETL3 in Iligan City (NSC News Special Bulletin, 20 April 1998).
As mentioned before, Lamberte, et.al. (1999) found that capacity utilization of firms decreased from July 1997.
Notes:
NSC News (1998), General Memo, NSC News Special Bulletin. Makati: Corporate Communications, NSC, 20 April 1998. back to text
Lamberte, Mario B., et. al. (1999), “Impacts of the Southeast Asian Financial Crisis on the Philippine Manufacturing Sector.” Discussion Paper No. 99-09 (Revised), Manila: Philippine Institute for Development Studies, 11 May 1999. pp. 1-55. back to text
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