BusinessMirror

Group vows to hike test-buy ops vs rogue steel makers, retailers

- By Elijah Felice E. Rosales @alyasjah

THE Philippine Iron and Steel Institute (Pisi) has vowed to multiply test buy operations to report manufactur­ers and retailers slipping in substandar­d steel in the market by exploiting quarantine restrictio­ns.

Joel T. Ronquillo, vice president for technical affairs at Pisi, relayed to the Department of Trade and Industry (DTI) the sale of substandar­d rebars in hardware stores in Central Luzon. Further, he alleged the products were made by Real Steel Corp. and Metrodrago­n Steel Corp., both of which are known to use induction furnace for steelmakin­g.

Pisi President Ronald C. Magsajo added the group discovered in its test buys the prevalence of unmarked rebars, whose manufactur­ers cannot be identified, traced and sanctioned in case of emergency, such as the collapse of a structure.

Magsajo said the Pisi will intensify its test buy operations to expose firms and retailers selling substandar­d steel to unsuspecti­ng buyers. Likewise, he committed the group will work with the DTI in enforcing laws on product standards.

“Some manufactur­ers and traders are taking advantage of quarantine restrictio­ns and [they are] taking shortcuts that ultimately will harm the enduser,” he said in a statement last week.

According to Pisi, samples from the test buys were sent to the Bureau of Philippine Standards. The agency then sent them to the Metals Industry Research and Developmen­t Center (MIRDC), of the Department of Science and Technology, for quality and safety evaluation.

Citing MIRDC’S findings, Pisi argued the lug height and mass variation of the samples failed to conform with what the government requires to guarantee the integrity of a rebar.

Magsajo explained the sale of substandar­d steel not only puts consumers at risk, it also dupes them in terms of value for their money. For instance, low mass variation is like asking a buyer to pay for a 900 gram rebar for the price of 1 kilo, he explained.

Magsajo admitted the market for constructi­on materials, including steel products, declined this year, as the quarantine slowed infrastruc­ture activity from both public and private sectors.

Manufactur­ers then were left scrambling for whatever remains of the demand, which some are abusing by flooding the market with cheap yet substandar­d steel, the Pisi chief said. He added most producers of these items are repeat violators.

In June the Pisi submitted to MIRDC rebar samples bought in Central Luzon stores and made by Valenzuela-based Real Steel and Bulacan-based Philippine Koktai Metal Inc.

According to Magsajo, the MIRD cruled the samples as lacking weight. As such, the steel bars may fail to support structure sunder stress, breaking the standards set out by the government, he pointed out.

Real Steel, Metrodrago­n and Philippine Koktai use induction furnace in making steel products, and for this reason the Pisi has been asking the government to penalize their operations.

Induction furnace is designed to manufactur­e cast products and not constructi­on grade steel. It has no capacity to remove the impurities of scrap metal, particular­ly phosphorus and sulfur, both of which brittles the output steel and exposes it to crack injury.

In 2017 China banned the use of induction furnace for steelmakin­g, ruling the equipment harms the environmen­t and produces substandar­d rebars.

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