Steel production in Argentina increased, cast iron decreased in November
Production of steel and hot-rolled products in Argentina increased in November compared to the previous year, while production of cold-rolled and primary cast iron decreased over the same period.
Despite the slowdown in activity in the metal-intensive sectors, steel production increased by 10.7% to 374,900 units. metric tons (t) in November compared to the same period last year, the industry organization Acero Argentino reported.
The volume of hot-rolled steel production rose to 334,300 tons in November, an increase of 0.7% from 332,100 tons a year earlier.
Investments in Vaca Muerta, the largest shale oil and gas field in Argentina, partially supported demand for crude steel throughout the year, including in November, according to Acero Argentino.
Projects in the region require the production of steel for pipelines and structural steel for energy infrastructure.
On the contrary, a decrease in activity in mechanical engineering, construction, household appliances and automotive industries led to a decrease in steel consumption. Demand has declined due to broader macroeconomic issues such as high inflation and high borrowing costs.
In November, Argentine factories reduced production of cold-rolled steel by 1.1% to 82,800 tons compared with the previous year, taking into account lower demand. Primary pig iron production fell to 214,900 tons, which is 21.6% less than in the previous year.
Steel demand also declined due to the automotive industry, which saw its output drop by 29.3% in November compared with the previous year.
In addition, the decline in cement sales indicates a slowdown in activity in the construction sector, another key consumer of steel. According to Acero Argentino, shipments fell by 4.2% in November compared to the same period last year.
Imports of steel-made goods have put further pressure on domestic steel demand, the Chamber of Industry said. Manufacturers of household appliances and heavy machinery have reduced orders for raw materials and production as competition for imports has increased.