BUENOS AIRES: Argentina’s steel distribution sector has been severely impacted by the heavy rains that swamped the country’s low-lying capital Buenos Aires and the province of Santa Fe, market sources said Thursday.
“It has being raining since the first week of August, and lots of people are being prejudiced by the situation,” one distributor said.
Drainage works have being carried out to reduce the damage from the latest flooding “which affected mainly logistic, construction and agriculture sectors,” another distributor said.
Distributors had expected August to be a turning point for the domestic steel market on the outcome of the presidential primary on August 9, but the rainstorms have dampened their plans, stalling deliveries and demand.
However, rains did not affect operations for steelmaker Gerdau in Argentina, the company said in an emailed statement.
Ternium Siderar and Tenaris were not impacted, the companies said. ArcelorMittal’s Acindar, Aceros Bragado (Acerbrag) part of Brazil’s group Votorantim, and Aceros Zapla declined to comment.
Both long and flat steel prices in Argentina from mills to distributors have been stable in August. Rebar at 8 mm, 10 mm and 12 mm are currently $940-$960/mt delivered, while 6 mm rebar is currently priced at $990/mt delivered. Prices exclude taxes.
Hot-rolled coil, 3.0-9.52 mm thick, continues selling at $895-$945/mt delivered and cold-rolled coil, 0.7-1.73 mm thick, at $980-$1,025/mt delivered. Prices exclude taxes.
