In current market situation, the local scrap industry of Philippine is hurt by declining volume of exports of scrap metal. This is endangered not only wholesale sellers and buyers but also many workers who were getting their livelihood by their association to the industry. The declining demand of steel items since September 2008 lead the industry to huge decline in tariff of scrap material, from PHP25/kg to PHP8/kg.
The customers of China, Taiwan, Thailand, and Malaysia as well as exporters of steel products to USA have suspended their imports since September 2008. Many local steel manufacturers are producing nothing due to weak demand and high volumes of stocks. All stakeholders in market are depressed. Due to release, no one is purchasing any material in excess. The industry provides jobs to millions of people of the country no matter whether they are skilled or unskilled laborers. The country needs international sales for cash flow as well as liquidity because importers pay the amounts immediately. On the other hand, domestic mills pay them every four months as usual.