Argentina's steel industry showed signs of recovery in August 2024, as crude steel production increased by 10.5% compared to July, reaching 346,900 tons. Despite this monthly growth, the industry remains in decline when compared to the previous year, with a 17.8% drop in production from August 2023. Hot-rolled steel followed a similar trend, rising 10.6% from July’s figures but falling 18.5% year-on-year.
Key sectors tied to steel production contributed to the monthly gains. The automotive industry saw a 16% boost in production compared to July, with exports also increasing by 16% from the previous month and 14% year-on-year. Agricultural machinery sales improved as well, surpassing 2023 levels. However, the construction sector struggled, with cement dispatches dropping by 3% from July, marking a 26% decrease from August 2023.
The Argentine Steel Chamber expressed support for regulatory reforms aimed at reducing bureaucratic hurdles across the economy. It emphasized the need to maintain high technical standards for steel used in construction, to ensure safety in infrastructure projects. The Chamber also called for action to reduce distortionary taxes that hinder value-added production.
In terms of production details, iron output increased by 31.7% compared to July, although it was still down 15.3% year-on-year. Crude steel and hot-rolled steel both showed monthly gains but remained lower than August 2023 levels. Cold-rolled steel saw a modest 1.7% increase from July, but production was still down 12.3% compared to the same period last year.
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