Colombian steelmaker Sidenal's shipments fell 10% year on year so far in 2017, but on higher prices in the domestic market, mill sources said Monday.
"The fall in the construction sector activity during 2017 is around 10% to 15% compared to 2016, which drove steel demand down," one manager said, adding "these are normal economic cycles."
Another source said the company is producing at about 75% of installed capacity during 2017, while in 2016 it was operating near 90%. "We're producing an average of 20,000 mt per month," he said.
During 2016, the company's income slid 6% to $383.91 million mainly because of a fall in the construction sector, which represents almost all shipments of the company. "We have a 15% market share in Colombia regarding rebar and 9% all long products," the manager said.
According to the sources, even with fewer shipments the income would be similar year on year because of an international increase in steel prices.
In the middle of June, Sidenal started the ramp-up phase at its new rolling caster. The company expects to initiate production at full steam in the coming months. The $60 million new rolling caster, located in the Sogamoso plant, in Boyaca state, has installed capacity of 250,000 mt/year and will double Sidenal's installed capacity to 500,000 mt/year.
Sidenal is also installing a new plant to produce steel mesh in Barranquilla, with capacity of 2,500 mt/month.
