Steel production in Argentina declined by 8.4pc in December to 326,200mt from the year prior, while it was 8.8pc lower from 326,200mt in November 2018, according to Acero Argentino or Argentina’s chamber of steel.
In 2019, crude steel output declined by 10pc, hot rolled coils by 10.5pc and cold rolled coils by 8.5pc from 2018. The decline in production was a result of lower demand from downstream steel manufacturers. Argentina’s automotive industry was hit the hardest by recession with a 32.5pc decline in production from a year ago.
Steel demand is unlikely to recover in 2020 not just on low domestic consumption, but also a decline in exports as the US government intends to levy import duties on steel and aluminium from Argentina and Brazil, said Acero. The chamber also stated that some steel exports are affected by elimination of export refunds, which were earlier at 4-6pc.