In line with the alarming numbers that the industry in 2024, the metallurgical sector reported that in August there was a its production fell by 10.2% year-on-year. This is the worst record since the end of the pandemic. In relation to what was produced in 2023, it has already accumulated a contraction of 15.1% compared to the same months of the previous year. From December to this part, the fall was 7.7%.
After learning these figures, the president of the Association of Metallurgical Industrialists of the Argentine Republic (ADIMRA), Elio Del Re, remarked: “The metallurgical activity remains at levels below the historical average, with a trend of ups and downs that generates uncertainty. Although there is still We cannot speak of a rebound, we are monitoring the situation closely to assess the outlook, aware that the road to recovery could be slow and challenging.”.
The report recording the variations in metallurgical activity carried out by the ADIMRA Economic Studies Department also noted that The installed capacity is 48%. This also implies a decrease, reaching 7.8 percentage points below the same month of the previous year and 10.5% below the 2023 average.
Due to the sharp declines in activity in recent months, the level of employment provided by companies in the sector has seen a year-on-year decrease of -2.5% and, compared to July, a decrease of -0.1%.
Metallurgical activity: details of the sector’s decline
On the other hand, within the metallurgical industry, the report detailed that there were falls in all subsectors, except for Bodies and Trailers.
The companies supplying the construction, final consumption and automotive value chains are those that suffered the worst relative performances, with falls of up to 14%. Those that supply the oil, gas and mining sectors continue demonstrating the best relative performances, but failed to grow compared to the previous year.
The Foundry (-15.5%), Auto Parts (-13.8%) and Electrical Equipment (-13.1%) sectors were among the most affected during August, while Bodywork and towing (+4.2%) was one of the sectors that registered growth during the month.
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In terms of the geographical distribution of the situation, there were widespread year-on-year falls in all regions, although a slowdown was observed compared to previous months.
In Santa Fe (-11.1%), agricultural machinery grew compared to last year and positively influenced the general average. However, the province fell above the metallurgical average as did Córdoba (-13.1%). Mendoza (-7.8%), Entre Ríos (-5.1%) and Buenos Aires (-9.2%) registered variations below the average and slight decelerations in the fall compared to previous months.
Regarding foreign trade, exports totaled 475 million USD and increased by 12.7% compared to August of the previous year. Imports, on the other hand, amounted to 1,822 million USD and fell by -40.2%. Thus, during 2024, more than 3.1 billion USD in metallurgical products were exported, while more than 13 billion USD were imported.
Source: Ambito
