Argentina steel mills kick off year with double-digit output drop

Wednesday, February 15, 2017

Argentina's crude steel output dropped 11.6% year-on-year in January to 291,300t, according to data from local steel chamber CAA.

Production shrank 6.8% from 312,600t in December.

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But CAA remains hopeful the industry will begin showing signs of recovery this quarter on the back of higher demand from the automotive industry and the agricultural machinery and construction sectors witnessed during the closing months of last year.

The association, in a statement, also said it expects demand from the car industry to strengthen further as a result of recent talks between the government and authorities in Brazil, the main destination of Argentine automotive products.

Argentina's output of pig and sponge iron in January was 247,600t, down 16.7% year-on-year and 0.1% lower month-on-month.

Hot-rolled flat and long steel output totaled 294,400t last month, down 14.1% year-on-year and 5.1% from December.

Cold-rolled flat steel output totaled 111,700t in January, down 8.6% year-on-year and 1.8% sequentially.

Argentina produced 4.13Mt of steel in 2016.