The global economic recession continues to impact Argentina's steel markets in the form of shrinking demand, declining local steel investment, decreased production and cuts to steel-related jobs, the country's leading steel industry association reported this week.
The latest steel production figures from Argentina show significant decreases from last year, although they are up slightly from the end of last year. Argentina's steel production in January 2009 reached 283,900 mt, 31.9 percent lower than in January 2008 and 6.7 percent higher than in December 2008, as announced by the Argentine steel industry association, Centro de Industriales Siderúrgicos (CIS), on Monday. The CIS also reported that the country's iron ore production in January 2009 fell 47.8 percent compared to January 2008 but was 4.4 percent higher than production in December 2008. Argentina's hot rolled coil production reached 246,600 mt in January 2009, 6.1 percent higher than in December 2008 and 40.6 percent lower than January 2008. Cold rolled coil production in January this year reached 67,500 mt, 31.1 percent higher than in December 2008 and 50.1 percent lower than in January 2008.
"The international crisis continues to heavily impact the Argentine steel market, causing a contraction in domestic demand for steel, affecting the pace of investments in the local steel industry, the levels of activity of plants and hence employment levels," the CIS press release read.
The Argentine steel industry association also expressed concern over the United States' "Buy American" policy, commenting in its release that the policy alarms Argentinians as they foresee it deeply affecting their economy. The CIS press release likewise remarked on the negative effect of Asian producers redirecting their exports from developed countries, like the US, to developing countries, like Argentina and most of Latin America, leaving local mills to face fierce import competition.