Argentina steel mills voice optimism on Q4 prospects

- Tuesday, October 18, 2016

Argentina steel mills voice optimism on Q4 prospects

Argentina's crude steel output dropped 27.8% year-on-year in September to 322,100t, according to data from local steel chamber CAA.

Sequentially, production fell 6.1% from 343,200t in August. Output for the first nine months of the year was down 18.6% to 3.08Mt.

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CAA, in a statement, said the local steel sector continues to underperform but reiterated a positive forecast for some of its product lines, such as flat hot and cold-rolled steel products.

The association also expects Argentina's general production to gather pace this quarter.

As a sign of this, public investment tripled in the third quarter compared with the first, which could generate a much-needed boost to the steel industry, CAA said.

Argentina's output of pig iron and sponge iron in September was 179,600t, down 43.0% year-on-year and down 1.9% month-on-month. Production in January-September was down 26.4% to 2.11Mt.

Hot-rolled flat and long steel output totaled 336,000t in September, down 0.2% year-on-year but 54.0% higher than in August. For the first nine months of the year production was down 15.6% to 2.86Mt.

Cold-rolled flat steel output totaled 106,200t in September, up 1.6% year-on-year and 57.1% from August. January-September production was 5.9% lower at 1.02Mt, the chamber said.