Argentina's main steel-demand sectors continued to slow in March even after some productive plants resumed operations after scheduled maintenance periods, steel association Camara Argentina del Acero said Tuesday.
Representing over 40% of the country's steel consumption, construction activity continued its downward trend of the past months. However, increased requests for construction permits began in March, which would imply that in a short period of time this could translate into greater activity in that segment, the association, known as CAA, said.
The automotive segment continues to have very low activity, with operational stoppages at several plants and an idle capacity on the order of 60%.
The machinery and agricultural implements segment, by virtue of the good harvest that is being recorded, is expected to help the sector recover, CAA said.
"It is very important to consider the high interest rates that still hinder operations, but the announcements made by President Mauricio Macri in Expoagro, linked to financing lines through the Bank of Investment and Foreign Trade (BICE), could help to start up quickly a replacement plan for the machinery part," CAA said.
The consumer durables industry is trying to reverse the situation while its commercial chain launched during the month of March various actions to promote the sale, CAA said. "Although very slowly, we begin to see a moderate growth of activity in this segment from the production point of view," the association said.
The energy sector continues to maintain its stable domestic demand, driven by investments in the Vaca Muerta shale oil and gas play and conventional deposits in the other areas.
