Argentinian steel prices remained unchanged during the first half of May as steelmakers were reportedly unwilling to lower their offers, even in the face of government pressure.
The country's ministry of production set up meetings at the beginning of the month with mill owners Acindar and Ternium Siderar, among others, in order to request price cuts "in order to make the market more competitive," sources said. The companies declined to comment on whether the meetings took place.
So far, buyers confirmed, prices have remained stable. "The steelmakers did not move their prices up or down. The pricing lists are the same," one distributor said.
In April, the government met with aluminum maker Aluar and a 14% decrease in prices was negotiated with the same objective.
According to sources, the only part of the market that can put pressure on and change Siderar's prices in Argentina is the government. "Not even the automotive industry or the large distribution centers have that negotiation power," one said.
Ternium Siderar is the country's sole flat steel producer.
"As Acindar has more competitors in the market, it is more likely to give in," one local source said. "However, [its] prices are still the same."
S&P Global Platts' monthly assessment for Argentinian domestic steel rebar was unchanged on May 1 at $760-$770/mt delivered for 8 mm, 10 mm and 12 mm rebar, and $810/mt delivered for 6 mm rebar.
The last price increase happened in January for February bookings, and the previous prices were $735-$750/mt delivered for 8 mm, 10 mm and 12 mm rebar, and $780/mt delivered for 6 mm rebar.
Platts assessment for hot-rolled coil, 3.0-9.52 mm thick, increased on May 1 to $800-$840/mt delivered and the cold-rolled coil assessment for material 0.7-1.73 mm thick, increased to $860-$900/mt delivered. Both exclude taxes.
