The lack of activity of Argentinian construction industry has put a break in steel rebar demand and pricing, sources said Friday.
"We're seen a stagnant market," one distributor said on the sidelines of the Expo Construir event in Buenos Aires. "This is not good; our shipments are lower, but at least prices don't have any room to go up."
Nevertheless, prices cuts also don't seem potential. Even with similar imported material coming in at least 20% discounted, volumes are not considerable.
Argentina's rebar imports in 2016 reached 5,502 mt at an average price of $382/mt FOB, down 75.6% compared to 2015, with 22,568 mt at an average price of $458/mt FOB. Brazil supplied all the rebar to Argentina during 2016.
According to the buying side, local producers have a well-established distribution chain through the country, covering the low year-on-year demand and making it harder imports of the material.
S&P Global Platts' monthly assessment for Argentinian domestic steel rebar remained at $760-$770/mt delivered in May for 8mm, 10mm and 12mm rebar, and $810/mt delivered for 6mm rebar.
The last price increase happened in January for February bookings, and previous prices were $735-$750/mt delivered for 8mm, 10mm and 12mm rebar, and $780/mt delivered for 6mm rebar.
Long steel is produced in Argentina by ArcelorMittal's Acindar unit; Aceros Zapla; Gerdau; and Acerbrag, part of Brazil's Votorantim Group.
Several sources said it is hard to predict something in the Argentinian market, but the lack of investments is expected to endure at least another quarter.
