Manila, Philippines: Increased government expenditure on infrastructure in the Philippines is expected to boost the country’s steel demand significantly.
The country’s infrastructure and other capital expenditure grew 31.4 percent to PHP 46.2 billion (US$91.3 million) in May this year, compared to the same period in the previous year. The figure is an increase of 38.1 percent from April this year, according to the nation’s Department of Budget and Management (DBM).
The government’s increase in spending was mainly due to expenses incurred in road construction projects and flood control spending.
The government plans to spend US$16.7 billion on infrastructure this year and US$166 billion over 2017 to 2022. The country’s steel demand is expected to increase to 30 million tonnes in 2030, up from 8.8 million tonnes in 2015, according to the Philippine Iron and Steel Institute.