The Argentinean Government's Decision to Get Involved in The Steel Industry

The Argentinean government's decision to get involved in the steel industry may lead to an increase in domestic tube prices and a fall in foreign tube imports, market participants tell Steel Business Briefing. As previously reported by SBB, ministers recently appointed three government representatives to the board of Techint, with industry observers predicting the alliance will generate a more centralized market. "We believe the government may take more protectionist measures against imports to guarantee Techint as the sole supplier to the local market," says one analyst. "With imports restricted, this is likely to generate internal price rises." According to industry sources, tube prices could rise by 5-8% as result. However, "the government doesn't want to deter investment from major oil and petrochemical companies as they are driving tube demand in Argentina through offshore projects," a local tube specialist tells SBB. Meanwhile, AD measures on Chinese tubes continue to be considered following requests from domestic producers Siderca (Techint) and Tubhier. The country's commerce secretary is monitoring the imports, most of which are geared toward the oil and gas industry. Source: steelbb.com