Argentine metallurgy production stagnates at historic lows, imports fall

Argentina's metallurgical industry is mired in a deep slump, with production hitting historic lows and imports falling sharply. In the first seven months of 2026, output dropped 5.5%, while imports saw a significant 10.6% decrease. The Association of Metallurgical Industrialists of the Argentine Republic (Adimra) attributes this dual decline to a "shrinking of the total market," driven by weakening demand for both domestic and foreign goods.

July offered a sliver of hope with a 0.1% increase in production compared to June, following three months of decline. However, this was still 4.4% lower than July 2025, underscoring the "stagnation at a historically low floor." Capacity utilization plummeted to just 39.2% in July, a six-point drop from the previous year and one of the lowest figures on record. This downturn has also impacted employment, with the sector shedding 2.2% of its workforce year-on-year.

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The combination of both phenomena reflects a “shrinking of the total market,” product of a demand that is weakening for both national and foreign goods.

Seven of the eight sub-sectors surveyed experienced year-on-year declines in July. Capital goods and agricultural machinery suffered the most significant setbacks, falling 9.5% and 7.7% respectively. Electrical equipment and medical devices also saw notable drops. Only the automotive parts sector showed a modest improvement of 1.9%, though its six-month cumulative performance remained negative.

Business expectations reflect this caution, with nearly half of metallurgical companies anticipating no change in their production over the next three months. Adimra noted that the growth in automotive parts was concentrated among a few export-oriented firms, while those serving the domestic market continued to struggle.

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stagnation at a historically low floor