Government Measures to Boost Export Sales
On Wednesday, the Argentine government announced a temporary suspension of taxes on aluminum, steel, and related exports to stimulate external sales, according to the Official Bulletin.
This measure will be in effect until December 31, 2025, or until the involved countries reduce their tariffs below 45%, whichever comes first.
Strengthening Export Capabilities and Competitiveness
The decree states, “The present measure aims to strengthen the export capacity and provide greater competitiveness to one of the country’s productive sectors, aligning policies with the principles of freedom and greater trade openness to promote the growth of industrial value chains.”
Focus on Aluminum and Steel Industries
Argentina’s aluminum industry is primarily centered around Aluar Aluminio Argentino, the country’s sole primary aluminum producer. With an annual production capacity of 460,000 tonnes, Aluar’s exports account for 80% of its total production.
The Argentine steel sector, however, faces a challenging situation due to the decline in domestic demand. In August, Argentina’s crude steel production stood at 370,300 tonnes.
Steel Demand Outlook
According to the Argentine Steel Chamber, “For this year, demand is expected to be slightly above 2024 levels, though still below those achieved in previous years.”
Key Questions and Answers
- What is the purpose of Argentina’s tax suspension on aluminum and steel exports? The government aims to bolster export capabilities and enhance competitiveness in the aluminum and steel sectors, aligning policies with free trade principles to foster industrial value chain growth.
- Who are the key players in Argentina’s aluminum industry? Aluar Aluminio Argentino is the primary aluminum producer in Argentina, accounting for the majority of the country’s annual production capacity of 460,000 tonnes.
- How does Argentina’s steel industry fare amidst declining domestic demand? The Argentine steel sector faces challenges due to reduced internal demand. In August, the country’s crude steel production was 370,300 tonnes.
- What is the expected demand for steel in Argentina this year? The Argentine Steel Chamber anticipates a slight increase in demand compared to 2024, though it remains below previous years’ levels.
