Subdued Recovery in Argentina’s Steel Output

Argentina’s steel sector is showing faint signs of recovery, according to new figures released by the Cámara Argentina del Acero. The report noted a modest 0.2% increase in crude steel production in April 2025 compared to the same month in 2024. However, when compared to March 2025, crude steel output fell by 4.1%, highlighting the persistent volatility in the market.

Laminated Steel Sees Stronger Rebound

In contrast to crude steel, laminated steel production offered more encouraging data. In April, output rose 6.5% from the previous month and registered a 16.5% increase year-over-year. This suggests that downstream steel activities, such as manufacturing of pipes, profiles and construction materials, may be stabilizing faster than primary steelmaking.

Consumer-Facing Segments Under Strain

Despite pockets of growth, the CAA warned of mounting challenges in steel segments tied to mass consumption. These include products used in home appliances, packaging and consumer goods, which are increasingly being displaced by cheaper imports. The chamber criticized the “unfavourable conditions” under which these imports enter the local market, sparking concerns about market distortion and job losses.

Impact of Imports & Trade Pressure

Industry experts point to a growing influx of foreign steel products sold at lower prices, potentially due to subsidies or dumping practices abroad. These imports are affecting the competitiveness of local producers, especially smaller manufacturers without the financial buffer to absorb pricing shocks. The CAA has called for regulatory reviews and safeguards to ensure a level playing field.

Energy & Input Costs Remain High

Adding to the woes, energy prices and costs of key inputs such as iron ore and coking coal remain elevated. While the government has implemented limited subsidies and tax relief measures, producers say it is not enough to counteract rising operational expenses. The pressure on margins is leading some firms to scale back investments in modernization and capacity upgrades.

Domestic Demand Remains Muted

Argentina’s broader economic climate continues to weigh heavily on domestic steel demand. Construction, automotive and infrastructure sectors, the traditional pillars of steel consumption, are showing mixed recovery trends. While public works spending has picked up marginally, private sector investment remains cautious amid inflationary pressures and currency instability.

Industry Calls for Coordinated Policy Action

The CAA has reiterated calls for a coherent industrial policy that supports domestic manufacturing. Proposals include tighter control on imports, incentives for local sourcing and financing schemes for technological upgrades. Without intervention, analysts warn the recovery seen in laminated steel may not be sustainable in the long term.

A Crossroads for Argentina’s Steelmakers

The current data underscores a fragile moment for Argentina’s steel industry. While laminated production offers glimmers of hope, the decline in crude steel and rising imports present a complex challenge. As policymakers weigh options, industry leaders stress that timely and targeted support will determine whether recovery gains traction or falters again.

Key Takeaways

• Argentina’s crude steel output rose 0.2% year-on-year in April 2025 but dropped 4.1% from March.

• Laminated steel production increased by 6.5% monthly and 16.5% annually.

• The sector faces strong competition from imported goods, especially in consumer-focused steel products.