ASEAN Steelmakers Urged to Build Resilient Supply Chains: PHL National Security Adviser

STEEL companies in the Association of Southeast Asian Nations (ASEAN) need to fortify their supply chains and diversify their sourcing to stay resilient in the face of energy shocks and extreme weather events, Philippine National Security Adviser Eduardo S. Oban, Jr. said. “Resilient interdependence means remaining open to trade while ensuring that no single supplier, route, technology, or production center can disrupt our regional supply chain,” Mr. Oban said in a speech delivered on Tuesday at the 2nd ASEAN Steel Policymaker Conference. He noted how low-quality steel puts infrastructure at risk during calamities. “Needless to say, many building collapses are attributed mainly to substandard steel materials. The same can be said for roads, bridges, and ports; substandard steel can make these gateways to disaster response, the disaster themselves,” Mr. Oban said. “Illegal steel mills employ undocumented workers, encourage cheap labor, with no tax, no social security, no safety,” he added. Mr. Oban also cited the importance of steel in strengthening defense industries. “Defense requires high-grade finished steel, of which we import 70%. Our operational readiness will suffer if our supply lines are disrupted,” he said. Mr. Oban noted that demand for steel will continue to increase as ASEAN grows more urbanized. “Distorted market conditions place intense pressure on domestic producers. Concentrated sources of supply expose our economies to geopolitical tensions, maritime disruption, export restrictions, and sudden price movements,” Mr. Oban said. Mr. Oban called on steel groups in the region to build “sufficient collective capability.” — Beatriz Marie D. Cruz