Analysts report that the losses incurred by Argentine steelmakers as a result of gas and electricity rationing have been minimal thus far.
Despite the mandatory gas and energy reductions for steel producers and other major industries imposed by the Argentine government, steel companies have been able to adapt to the cuts so far, curtailing production slightly and looking for alternative ways to lower energy consumption.
Gas supplies to many local industries were cut in May as a result of increased residential demand due to the onset of cold winter conditions in the southern hemisphere.
Argentine steelmakers affected by the cuts include long product manufacturer Acindar; long product mill Sipar, controlled by Brazilian long steel manufacturer Gerdau; flat rolled producer Siderar, owned by Ternium; and Acerbrag, which produces billets, steel bars and coils, plain bars and rods.
Sources say that while the country's annual steel production will be reduced this year compared to last year, the steel sector has not yet felt the effects of the production cutbacks in a major way. However, many analysts believe that the Argentine economy is in big trouble if the energy shortages continue, and there is no easy solution as of yet.
Argentina began to experience cold weather-related gas shortages three years ago, as economic growth began to outpace investment in the energy sector.