A major Argentinian service center told SteelOrbis that import prices for cold rolled sheet from Brazil have declined in January.
The source said it’s now importing cold-rolled sheet from Brazil at $600/mt CFR, down from $780/mt CFR in late-Q3/early-Q4.
“We don’t expect import prices for cold rolled sheet to decline much more along 2016,” the source said, adding prices tend to remain stable in most parts of the year.
As for the prospects for the Argentinian steel industry, the source said that despite all optimism surrounding the arrival of a new president, the automotive industry is yet to perceive the benefits of a right-wing presidency.
“The Argentinian currency is more stable with the USD, and that was a good aspect of Macri’s arrival at the Casa Rosada,” the source said.
“However, we’re still in the beginning of the year and Q1 is a warm up for most companies. The local automotive industry is still beginning its operations in 2016, as most plants are still on collective vacations,” the source noted.
1 USD = ARS 13.47 (January 19)