The Department of Trade and Industry (DTI) will issue a lower suggested retail price (SRP) for steel products following the lifting of the seven percent tariff and the declining prices of steel in the world market.

DTI Undersecretary Zenaida C. Maglaya told reporters on Friday that prices of steel should be lower than the prevailing prices of CRC (hot rolled coils) and cold rolled coils (CRC).

On June 22, 2010, then President Gloria Arroyo signed EO 898 lifting the seven percent tariff on steel products but with a condition to revert back to seven percent once Global Steel Philippines Inc. (GSPI) returns to full commercial operation.

The lifting of the 7 percent tariff on HRC and CRC, the intermediate steel materials for downstream steel products, was premised on two factors: to avert the planned 3 to 5 percent increase on locally fabricated finished steel products, particularly galvanized roofing materials and to ensure enough steel supply since GSPI, the country’s lone HRC and CRC producer has not been operating regularly.

The removal of the 7 percent tariff was granted despite strong opposition from GSPI. The government has estimated to forego P800-million revenues arising from the waived duties.

Up until May this year, prices of the raw materials for HRC and CRC production was at a high of $800 per metric tons from $600 tons and steel fabricators had a pending notification of the DTI to increase prices by 3 to 5 percent. The latest price monitoring showed that prices of G.I. sheets have remained the level posted in May and April months although the current prices are higher compared to prices in May a year ago.