As demand for ferroalloys at Argentinian steelmakers Tenaris’ Siderca, Ternium’s Siderar and ArcelorMittal’s Acindar has diminished, local ferroalloys producers have started to idle their furnaces and are expected to lay off about 400 people.
About 400 workers at the Mendoza-based producers, Manferro and Globe Metals, face the risk of being fired, as the two companies were dependent on some of the country’s steel producers, which use the feedstock to produce steel.
Among the reason” that led the two companies to adopt such a measures are “the strong fall in exports and local sales, which is due to the increase of the costs [of these companies], the decline in domestic demand, the strong impact of the currency, which prevent these companies from selling [their products abroad], as well as by the loss of the competitiveness [of the industry],” the country’s chamber of ferroalloys and specialty alloys, Cafae, said in a statement.
The two companies are reportedly to have idled their furnaces for about one month until now. The producers are expecting to have a meeting with the nation’s economy ministry, in order to ask the government’s help.
Cafae said about 700 direct job positions as well as other 5,000 indirect jobs are “at risk.”
Argentina used to export ferroalloys to the US, Mexico, Japan, Europe and South Asia for about $1,700/mt, but now prices reach $1,100/mt. The weakening of the BRL, Argentina’s main partner, has also impacted the local industry.