Argentina Automotive Steel Market Outlook

the automotive steel market in argentina is highly competitive and is set to expand rapidly over the next decade. demand is driven by robust economic growth, increased technological penetration and increasing size of vehicles in the country. the largest segment in the argentine automotive steel market is that of cold rolled steel sheet. in 2018, sales for this use was estimated to be at around 5.3 million tonnes, accounting for 68 percent of total demand. galvanized steel sheet is the second-largest segment, accounting for approximately 21 percent market demand for hot-dipped galvanized products also decreased in 2018, due to a decrease in demand from automotive producers. in terms of supply, amounts of imported steel products into argentina increased significantly after the devaluation of the argentine peso. as a result, local production decreased significantly. imports of steel products by argentina reached 8.7 million tonnes in 2018, an increase of 13 percent compared to 2017. imported steel accounted for 55 percent of total supplies in the country that year. the main sources of imports were asian countries such as india, china and south korea. in terms of quality, argentine automotive steel is mainly derived from carbon and low alloy steels. the demand for high-end steel form higher-end cars produced in argentina is on the rise. in 2017, the argentine government announced the decision to reduce protective measures on imports of steel, this should further drive competition within the industry in the coming years. furthermore, the government has also announced incentives to encourage new investments in the local automotive sector, which should help to increase the penetration of steel products in the coming years. looking ahead, the prospects for the argentine steel automotive market look bright. with a robust economic outlook and ongoing measures to reduce protective measures on imports of steel, demand for both domestic and imported steel is expected to increase in the coming years. furthermore, increased investments in the local automotive sector should further boost the appeal of steel products in the coming years.