Argentina’s crude steel production fell by 22.2pc in July to 325,300mt from July 2019, according to data provided by Cámara Argentina del Acero (CAA). Crude steel output rose by 34.9pc from June.
In January to July period, crude steel production declined by 34.4pc to 1.76mn mt from 1.54mn mt in the prior year period. The association said that steel production continues in the country despite COVID-19, keeping protocols and safety measures in mind. However, demand from the energy sector has remained stagnant while demand from the construction sector has shown recovery.
CAA suggested that the Argentine steel industry could offset the production decline by increasing exports of products with high value.
Exports could aid plants to operate at higher capacity utilization rates.
Argentina’s auto industry recorded a 41.1pc decline in production in July from the prior year but production has recovered to improve by 36.1pc from June. There is high uncertainty in the domestic steel market as the COVID-19 pandemic has not subsided in the country, said CAA.
|Argentina’s steel production (mt)|