Posted on 17 Aug 2020
Argentina’s steel industry continued to recover after the peak of the Covid-19 outbreak. Production rose on-month in July, but its performance remained weaker on-year in the first seven months of 2020, according to local steel association Cámara Argentina de Acero (CAA) data monitored by Kallanish.
“A gradual recovery in steel production has begun as from May after [pandemic] containment measures became more flexible,” CAA comments. “The initial return to normal was supported by the restart of activity in the construction, white goods, automotive and agricultural machinery sectors, which maintain a sustained rhythm of operations.”
However, energy sector performance remains depressed by minimal domestic drilling activity, strongly impacting consumption and local production of pipe, the association adds.
Crude steel output reached 325,300 tonnes in July, an increase of 34.9% on-month but down -22.2% on-year. In January-July Argentinian crude steel production was 1,796,000t, -34.4% lower y-o-y.
July hot rolled steel production amounted to 302,600t, 21.5% higher on June but -20.7% less y-o-y. Year-to-date hot rolled steel production amounted to 1,644,500t, down by -33.4% on-year.
July cold rolled flat steel output rose by 33.4% on-month to 105,700t but was -6.9% less compared to the same month in 2019. Cumulative cold rolled flats output fell -13.1% on-year to 560,000t.
Argentina’s iron ore production was 1,278,700t in January-July, -30.9% down on-year. In July alone it was 235,300t, 106.6% higher m-o-m and 37.2% more on-year, CAA concludes.
Source:Kallanish
