.
>> These small shop workmen are working with scrap <<
How do you know that?
I can buy an 80% AR receiver and finish it using the jigs that come with it, and my drillpress; does that make it scrap?
But the reports that I have read over the years indicated they used scrap steel. That may have changed. On some parts, scrap of nearly any kind would be adequate, on others, the steel type and heat treating could make a significant long term difference.
.
Most of the bogus guns that I have known of come from Brazil, not the Philippines.
Molybdenum and antimony are readily available in east Asia.
.