Steel in Argentina Current Demand Behavior Analysis¶
Demand Behavior¶
The final customers in the Argentine steel value chain consist predominantly of businesses (B2B) and a smaller segment of individual consumers (B2C). The vast majority of steel is consumed by other businesses across a multitude of sectors. These B2B customers include construction firms utilizing steel for residential, commercial, and infrastructure projects; automotive manufacturers (OEMs) requiring steel for vehicle components; machinery and metalworking companies that use steel as a primary input for agricultural equipment and capital goods; energy operators, particularly in the oil and gas sector like Vaca Muerta, who are major consumers of seamless tubes for pipelines; manufacturers of appliances ("white goods"); packaging companies using steel for cans; and engineering contractors. [Value Chain Report] Small contractors also represent a B2B segment, often purchasing steel in smaller quantities through retail channels. [Final Customers Identification]
The direct sale of steel products to individual consumers (B2C) is less significant and typically occurs through retail distribution outlets such as ferreterías and construction-materials outlets. [Final Customers Identification] These individual customers usually acquire steel in small lots for minor construction, repair, or do-it-yourself projects. [Final Customers Identification]
Based on the provided reports, specific quantitative data on the total number of individual (B2C) or business (B2B) consumers across all categories is not available. The reports describe the types of customers and the channels through which they are reached (direct sales, wholesale, retail networks like Red Acindar with over 50 outlets or distributors like Juan Navarro with 8 branches), but do not provide a numerical count of the customer base itself. [Value Chain Report, Final Customers Identification]
Regarding the growth or decline in the number of customers, the available data points strongly towards a decline in the demand from the customer base, particularly within the B2B segment which constitutes the majority of consumption. This is evidenced by significant contractions in steel production and low capacity utilization rates in 2024 and early 2025, directly attributed to subdued domestic demand and a broader industrial contraction in Argentina. [Value Chain Report] Crude steel production in Argentina fell by 26% in 2024. [Value Chain Report] More recent data from early 2025 continues to show year-on-year declines in production. For instance, crude steel production in February 2025 was down 2.2% year-on-year, and January 2025 production saw a significant 26.5% decrease compared to January 2024. [Value Chain Report] Similarly, hot-rolled laminate production experienced a substantial 43.5% drop from January to February 2025 and was down 13.4% year-on-year in February 2025, attributed to extraordinary plant stoppages due to delayed recovery in demand. [Value Chain Report] The industry's capacity utilization for steelmaking was notably low at 40% in February 2025, further indicating weak demand from customers. [Value Chain Report] While apparent steel consumption in 2023 was 4.99 Mt, the subsequent production declines suggest a significant reduction in consumption volume in 2024 and early 2025. [Value Chain Report] The overall industrial activity in Argentina also fell by 9.4% in 2024, with the industry and construction sectors experiencing their worst year in two decades in 2024, directly impacting the demand from major B2B customer segments. [Value Chain Report] Although a recovery is projected for 2025, driven partly by the energy sector, the expected demand levels are anticipated to remain below those of 2023. [Value Chain Report] Therefore, while the exact number of customers isn't specified, the volume of demand from these customers has clearly been in decline recently.
| Metric | Time Period | Trend | Notes |
|---|---|---|---|
| Crude Steel Production | 2024 vs. 2023 | Decline | Fell by 26%. [Value Chain Report] |
| Crude Steel Production | Feb 2025 vs. Feb 2024 | Decline | Down 2.2%. [Value Chain Report] |
| Crude Steel Production | Jan 2025 vs. Jan 2024 | Decline | Down 26.5%. [Value Chain Report] |
| Hot-Rolled Laminate Production | Feb 2025 vs. Feb 2024 | Decline | Down 13.4%. [Value Chain Report] |
| Steelmaking Capacity Utilization | Feb 2025 | Low | 40% utilization, indicating weak demand. [Value Chain Report] |
| Overall Industrial Activity | 2024 vs. 2023 | Decline | Fell by 9.4%; worst year in two decades for industry/construction. [Value Chain Report] |
| Domestic Demand | 2024 & early 2025 | Depressed | Explicitly mentioned as a bottleneck causing production drops. [Value Chain Report] |
References¶
- Value Chain Report on the Steel Industry in Argentina (Provided Text)
- Steel in Argentina Final Customers Identification (Provided Text)