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                    Argentina's HRC, CRC prices slashed, demand depressed

                    Time:2016-03-03 Click:2796
                    Argentina has seen a new round of price cuts of up to 5% for flat steel products, market participants said Wednesday. 

                    Given a dearth of deals, buyers said that Siderar has recently announced a price drop of 3.6% to 5.1% in its hot-rolled coils and cold-rolled coils, respectively, effective immediately. 

                    Platts monthly assessment for Argentinian hot-rolled coil, 3.0-9.52 mm thick, dropped to $680-$715/mt delivered and cold-rolled assessment, 0.7-1.73 mm thick, for white goods, is at $755-$790/mt delivered. Both exclude taxes. 

                    In February, HRC was assessed at $715-$755/mt, while CRC at $785-$820/mt. 

                    Ternium Siderar also cut its flat prices 1.7% to 5.1%, company CEO Daniel Novegil said last month. According to the company, hot-rolled coils would suffer a price decrease of 5.1%, cold-rolled coils 3.6%, and galvanized sheets 1.7%. Prices were already valid for February bookings. 

                    Payment terms continue negotiable, with a few distributors required to pay within one week, while others said a 30-day payment has also been accepted. 

                    "Siderar, however, does not give discount whether payment is done this week or not," one distributor said. 

                    "February's demand was poor, depressed," said another distributor. "It increased compared to January, but if you compare to last year, it was around 20% down," he added. 

                    A source at a transportation company confirmed the scarcity of movement. "From the logistic point of view, February was too low," he said. 

                    Regarding March, sources said expectations are good but still not noticeable in shipments. "March has, historically, more industrial activity, and this may show in the construction sector, which is one of the only sectors with positive numbers in the steelmaking industry," one distributor said. 

                    However, one of the most demanding sector of flat steel in the country is not responding well. Automotive production continues to fall in Argentina, which is a reflection of Brazil's economy situation, demanding fewer exports from Argentina.