Despite being expected to see some growth in apparent steel consumption this year, the Argentinian steel industry still has some issues to fix, according to José Giraudo, CEO at Argentinian steelmaker Acindar, from ArcelorMittal.
During a panel at the Alacero conference this week, held from November 10-11 in Buenos Aires, Argentina, the executive addressed several issues the Argentinian economy should address as well as the opportunities that could arise as some of these needs are met.
According to Giraudo, domestic steel consumption has stopped in the past few years. In addition to a stagnant domestic steel market, the country has been facing difficulties to export the product, at the same time Chinese imports in the country have increased.
According to the executive, some of Argentina’s main challenges include the recovery of the country’s stability and consistency in the major economic variables.
He said Argentina should also stimulate new investments, while dealing with infrastructure in a more integral way. Increasing the country’s global productivity and protecting the nation against the “unfair competition” with China were some other solutions the South America country should seek.
According to Giraudo, about 49 percent of Argentinian’s steel demand comes from the civil construction segment, while the industrial segment accounts for a 34 percent share, and infrastructure for another 7 percent. The mining, gas and oil industries account for the remaining 10 percent share.
Giraudo said one of the opportunities arising for the local steel industry – which is also a challenge to be addressed – is the country’s habitation deficit, which is estimated at 2 million homes.
“A mortgage credit system would be important to promote the development [of the local real estate market,” he said.
The Acindar CEO also mentioned the industry’s expectancy regarding the new president, who’ll be know in the next few days.
“Whoever wins the race, we should see a change from a management model, which was blind by looking just at the domestic market, for a model, which is more oriented to exports,” he added.