Sources in Argentina told SteelOrbis they’re somewhat optimistic regarding the future of the nation’s steel market, which is currently struggling to export steel and faces strict import controls.
Sources expect a more real currency and an economy, which is more open to both the export and the import market.
A trader said the nation’s currency is likely to change, in accordance to what some of the major local steel producers said earlier in November during the Alacero conference. Recently, Martin Berardi, general director at Argentina’s Ternium Siderar, admitted there’s a “delay in the [devaluation of the] Argentinian currency.” The executive said such an unbalance will be adjusted at some point.
Acindar’s CEO, Jose Giraudo, was also optimistic at the conference and said “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.” Mauricio Macri’s win just reinforced the already expected changes the local steel market has been claiming for.
“[Right wing elected president] Macri said that effective on December 11 we’ll have just one USD exchange rate, which clearly won’t be at ARS 9.50. We don’t know how the new currency will be like, but it won’t be at ARS 9.50,” a Buenos Aires-based source said, adding importing steel to Argentina – even from local partners – has been tough.
“I think Argentina is now wanting to integrate itself to the world,” the trader said.
In terms of prices, the expectancy of market participants has been divergent. While releasing its Q3 results, the long steel branch of Brazil’s conglomerate Votorantim Industrial, said its sales volumes grew by 5 percent, year-on-year, “due to increased demand in the construction sector in Colombia along with higher sales in Argentina due to expectations of increased prices after the presidential elections.” Acerbrag is Votorantim’s Argentinian subsidiary.