Peruvian steelmakers are operating at half their capacity, due to limitations in the development of new civil construction and infrastructure projects, and thanks to the increase of steel imports, said the local civil construction chamber, Capeco.
While imports of steel from China and Turkey have increased in Peru, the nation’s steelmakers Aceros Arequipa and Gerdau’s Siderperu have worked to optimize their operations and reduce costs, which gives them room for an increase in the use of their capacity in the future, the trade group said.
Aceros Arequipa invested PEN 338.9 million (US$100.3 million) in 2012 to expand its capacity. One year later, in 2013, investments declined to PEN 191.8 million (US$56.8 million).
Capeco said in 2008 Peruvian mills operated at 71 percent of their capacity, but since 2009 use of capacity has declining to 53-50 percent.
The trade group added the weak demand in the nation’s civil construction sector has also impacted the performance of steel production at the local steelmakers.
1 USD = PEN 3.37 (December 18)