Argentina's government is continuing to pressure local steelmakers to drop their prices in order to help to control the country's inflation and help consumption, market sources said Tuesday.
The government wants steel prices to fall to be more competitive, as domestic prices run about 30% higher than those in the international market, sources said. "Plus tax pressure, which goes against investments," one source said.
The country's minister of production, Francisco Cabrera, set up meetings at the start of May 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. They said meetings were still being scheduled to discuss the issue.
In April, government meetings with aluminum producer Aluar and negotiated a 14% price decrease, sources said.
Efforts to get comment from the ministry Friday and Monday were unsuccessful, while the companies declined to comment. The S&P Global Platts monthly assessment for hot-rolled coils, 3.0-9.52 mm thick, was $800-$840/mt delivered at the start of July, while the cold-rolled coils assessment for material 0.7-1.73 mm thick, was $870-$900/mt delivered. Argentinian domestic rebar was assessed at $760-$770/mt delivered for 8 mm, 10 mm and 12 mm rebar, and $810/mt delivered for 6 mm rebar.
