Entrepreneurs from the steel industry are hesitant in their sights. They talk about the glass being half full when analyzing stability measures The macroeconomic measures promoted by Javier Miley’s government – with lower inflation, elimination of the exchange gap and greater opening of stocks – but at the same time, They see the glass as half empty due to a series of internal factors, such as slowdowns in public works, declines in construction and consumption, affecting sales in the sector, or the lack of competitiveness associated with it To the “Argentine cost”, which is affected by tax, regulatory and infrastructure issues.
In this context, Companies operating in this sector are considering the outcome of the recent elections and are asking the government to take the discussion forward in Congress to finalize labor and tax reforms.These are two factors that they consider essential for improving the systemic productivity of the Argentine economy. On the other hand, praise for “greater openness” coincides with calls for “equality of opportunity.” And this Pay attention to China’s progress, both with its primary steel production and with final goods (from packaging and automobiles to white goods) threatens to make gains in the regional market.
Domestic steel production is on track to end the year with growth of 2.9%. This is a modest variation, lower than the estimate for GDP (4.5%), which occurs after the industry collapses by 9.5% in 2024. This is data from Alacero, The body that brings together the regional chambers of the sector, This too He described a growth of 6.5% in the rolled steel industry (although the level is 23% lower than in 2023) and 10.8% in long steel (this sector shows a 34% decline compared to 2023)The latter is more vulnerable due to the decline in dynamism in the construction sector following the slowdown in public works and the stagnation of private works due to rising costs.
“We have already proven that a closed economy does not work. He added: “We have to move towards a more open plan and the discussion is about how Argentina can open up in this context.” He grew up martin berardi, CEO of Ternium Argentina, when identifying the threat that It means Chinese progress for domestic production and the consequences of a US or EU tariff reaction It could have an impact on the global economy.
In this context“This more open economy forces you to become competitive,” Berardi warns. On an agenda that includes internal factors (“You have to run the chainsaw on all the excess spending, gain efficiencies, invest in technology and automation”) as well as state elements.
The number one common complaint in the industry is complaining Distortionary Taxes “We have three taxes that no one has: gross income, checks, and municipal taxes, which are added at each value stage. This means that we bear a higher tax burden than any other competitor in Latin America. “Imagine against China, which provides subsidies of all kinds,” said Berardi, who also urged the government to move forward in this area. Labor market reform: “This makes SMEs resort to more formal employment. Lawsuits, for example, are a problem today.”
to Federico AmosCEO of ArcelorMittal Acindar, the process of economic stabilization that has progressed since the change of government, and its consequences for activity, were expected. He added: “This year there will be a recovery, but we are still below 2023 and the historical average.” says the executive whose company, which specializes in long steel, has felt the impact of the decline in construction and cutbacks in public works. Amos insists that this is a pending factor for the future. “The overall economy has improved, but some of the demand has disappeared. Now public works have to come back. The issue is how. “But that discussion is not there,” says the executive, who also expects activity to grow in 2026.We expect a credit recovery that will boost the economy“, said L Nation.
Berardi shares the optimistic scenario for next year. “Steel is behind the value chain of mining, Vaca Muerta and agriculture, which, if all goes well, will invest in barns, harvesters, seed machines or small trucks. The vision is positive“But now we have to do the job,” says the executive, referring to the reforms the government is promoting. He also insists that the “right direction” is “out of the trap”: “In order for there to be investment, there must be a free flow of capital. If not, it’s difficult. So, “It is important for companies to get the country out of stocks as quickly as possible and this will make investments viable because there is potential.”
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