In January, prices for 8-12mm rebar in Argentina’s domestic market ranged from $735-745/mt and $775-780/mt for 6mm rebar, all prices delivered. For February, domestic rebar prices have increased by $20/mt for 8-12mm rebar and $30/mt for 6mm rebar compared to January prices. Presently, rebar prices are being heard at $755-$770/mt for 8-12mm rebar, and $805-810/mt for 6mm rebar, all prices delivered.
In addition to high coking coal and global raw material prices, sources note increased operational costs stemming from recent energy cost increases for February and March which will be up to 150 percent higher for industrial consumers.
However, demand continues to be weak in the domestic construction sector, where few large infrastructure investments have been made in Argentina. Additionally, January activity was even slower due to heavy rains throughout the country.
The construction sector is mostly driven by small buildings, housing and investments from the private sector. According to the country's National Institute of Statistics, Indec, construction activity in Argentina fell 12.7 percent year-on-year in the full year 2016. Apparent consumption data for construction in December showed a 18.3 percent year-on-year decline in rebar, and a 19.4 percent decrease for the full-year 2016 period.