Acero Argentino (AA), the Argentine chamber of the steel industry, reported that the country's crude steel production soared 22.5 percent to 351,400 metric tons (mt) for January 2026, compared with 286,800 mt for all of December 2025.
Insiders told SteelOrbis the sharp increase reflects expectations for higher sales of finished steel products, even though rolling activities failed to show an equivalent increase.
On a similar comparative basis, the production of HRC declined by 20.3 percent to 151,900 mt, CRC production increased by 3 percent to 103,200 mt, while the production of long products rose by 26.8 percent to 124,700 mt.
When compared with January 2025 data, AA said crude steel production stands 17.2 percent higher, though HRC production declined 8.4 percent. Year-on-year CRC production data comparisons show output slumped 8.9 percent, while long product production rose 3.2 percent.
According to AA, the stabilization of the economy, with inflation receding to 2.9 percent in January, is expected to facilitate a revival in private credit, potentially boosting consumer activity that would require delivery of more finished steel. Additionally, investments in agriculture, energy, and mining are expected to enhance value chains within the metallurgy and machinery industries.
In addition, a reduction in taxes on the local steel industry and higher barriers on steel imports would improve the competitiveness of the sector, AA said.
On the steel demand side, AA said the agriculture machinery sector could grow between 4 percent and 5 percent in 2026, if taxes are reduced, financial credit expanded and imports of used machinery are reduced.
Civil construction is expected to grow by 4.5 percent, following January's strong results, while the automotive sector is projected to continue declining from 2025 levels, AA said.
Sectors associated with household consumption, including domestic appliances and packaging are expected to continue to “face a critical scenario,” with lower production and continued pressure from imports.
The energy sector is likely to show continued growth, AA added, because of continued development of the Vaca Muerta shale gas and oil reserves.