metallurgical activity It contracted an average of 13.8% in the first two months, compared to the same period last year. Is about a drop of 14% in January and another 13.5% in February.
This was reported by the Association of Metallurgical Industrialists of the Argentine Republic (ADIMRA). “In inter-monthly terms,Activity fell 2.5% compared to January and thus accumulates a drop of 4.4% during the year ongoing”, indicates the report prepared by the Department of Economic Studies of ADIMRA.
The report indicates that the year-on-year contraction for January and February has been replicated in all the areas that make up the metallurgical framework with drops of more than 15% in various cases.”
He President of ADIMRA, Elio Del Re, stated that companies foresee a “decrease in production In general terms, as well as internal demand and the use of installed capacity, which is why it is considered necessary to promote investment but with a vision of promoting the development of the national industry.
“We must prevent sectoral emergencies and pressures from promoting the importation of locally produced equipment, generating an enclave structure,” said Del Re.
In this sense, the businessman said that “andThe Large Investment Regime presented in the draft Base Law did not enhance Argentine production.”
The report says that “thehe three items that have fallen the most during these months have been Agricultural Machinery (-19.5%), Capital Goods (-11.3%) and Medical Equipment (-22.9%). In turn, Electrical Equipment (-10.4%), Auto Parts (-10.7%), Foundry (-11.0%), and Other Metal Products (-16.9%) have also had a negative change in production. during January and February.”
“With respect to utilization of installed capacity (UCI), we also see a behavior similar to that previously recorded. The installed capacity of January was around 44.7% and in February 45.4%, lor that means a drop of almost 10 percentage points in the use of average resources in 2023,” says the report.
According to the study, the province that has fallen the most has been Santa Fe, as a result of the high influence that the agricultural machinery sector has in the province.
“With respect to the rest, the majority varied between -10% and -15%, in line with the general average for the entire sector,” indicates ADIMRA.
The report adds that “despite the general decline, there are sectors that moderated the average contraction of the sector, with the exception of metallurgical goods linked to the oil and gas chain which had a slight interannual increase. However, for the most part they have also been negative.”
Source: Ambito
