The steel industry is struggling to make a comeback after falling sharply in 2016.
The industry is now worth less than half of what it was when it was hit hard by the Brexit vote, the International Monetary Fund has warned, and there is a growing fear that the industry will fall into recession.
“The steel industry has not recovered from the Brexit shock and it has become more vulnerable to further shocks in the coming years,” said Daniel Fink, the IMF’s assistant director for trade, finance and investment policy.
“The industry will be in even greater difficulty to recover after 2020.”
The Imelda Marcos Steel Association (IMSA) is the largest steel industry in the Philippines, with a workforce of more than 5,000 people.
The union represents workers in the steel industry, and a group of local officials has called for a national boycott of steel imports in an attempt to keep costs down.IMSA is the second biggest steel producer in the country, with its production coming in at about 20,000 tonnes per year.
It’s not just the Philippines that is facing a slump in the industry, though.
A number of countries in Europe are experiencing similar difficulties.
Steel is used in buildings, power stations, ships and trains.
It’s also used in building materials, from furniture to carpet.
The IMEA warned that steel prices will be the biggest risk to the steel sector in the years ahead, and that the country’s industry was on the verge of collapse.
“Steel prices have fallen by 50 percent over the last three years,” Fink said.
“It is very likely that the decline will accelerate if the current economic downturn continues.”
The IMF also said that if prices do fall, it could hurt the ability of the steel-making sector to borrow money.
“In the coming decade, the global steel supply chain will face significant challenges, including the introduction of higher costs and a lack of competitive pricing and a sharp reduction in domestic demand,” the report said.
“If prices decline further, the supply chain could be at risk.”
The Philippines is also one of the countries that imports the most steel from China.