2025 showed an economy of two speeds, where extractive sectors pulled strongly, but internal consumption and traditional industry suffered a strong adjustment, while China's advance impacts key sectors such as steel production. In the difficult context of a weak demand recovery, Argentina is exposed to a complex regional scenario due to Chinese steel imports, which have grown 233% in Latin America in the last 15 years, according to a recent report from the Latin American Steel Association (Alacero). The increase in tariffs in different countries and blocks promotes the diversion of products towards Latin America, which sees Chinese products increase their share, the entity warned. Energy (mining, gas and oil) and the knowledge economy were the drivers of growth. The construction sector was impacted by the paralysis of public works and a slow private reactivation, the Automotive sector recorded a 3.1% year-on-year drop in production, and the Metalworking sector in general fell by 0.9%, affected by the opening of imports and the drop in consumption, according to a report from the Steel Industry Chamber. In December 2025, China surpassed the export levels seen last in 2015. The increase in tariffs in different countries and blocks promotes the diversion of products towards Latin America, which sees Chinese products increase their share.
INVASION OF CHINESE PRODUCTS In the difficult context of a weak demand recovery, Argentina is exposed to a complex regional scenario due to Chinese steel imports, which have grown 233% in Latin America in the last 15 years, according to a recent report from the Latin American Steel Association (Alacero). For this reason, they promote a chain of subsidies that allows them to sell to the world below the real production costs.
WHY IS UNFAIR TRADE TALKED ABOUT? This ends up affecting employment and production in Latin America. China overproduces steel for a world whose demand cannot absorb the surplus. 'We need a comprehensive strategy with countries and regions that share the same market rules as us, such as the United States or Europe, to continue generating opportunities throughout our continent,' the entity stated. +233% Chinese steel exports have grown*-13% crude steel production has fallen__IP__-4% All steel products are flooding the international market at a price below its real production cost. #AgenciaNA 'The steel sector faces a global oversupply, mainly from China, whose export volumes double the consumption of all of Latin America. In December, cement shipments fell 9.7% monthly and 1.8% year-on-year.
AUTOMOTIVE December production fell 30.3% vs. November and 30.4% year-on-year; the accumulated 2025 fell 3.1% compared to 2024. GLOBAL EXCESS SUPPLY The global oversupply of steel, led by China, continues to pressure with greater exports, affecting the different markets. In 2026, more works are expected, although the importer pressure could affect the local steel supply.
CONSTRUCTION There is still no sustained recovery. Recovery in 2026 depends on credit and income. ENERGY 2025 closed with rising demand in Vaca Muerta due to new transport projects. It is imperative to continue working for cost reduction and productivity increase, but none of this will be achieved if we do not work on a level playing field; it is necessary to promote the necessary modifications for the elimination of distorting taxes and the reduction of the tax burden that weighs on the local industry, indicated a report from the entity. The report came at a time when the government of Javier Milei maintains a tough crossing with the Techint Group, after the complaints expressed by that industrial complex for having lost a million-dollar tender to supply pipes for Vaca Muerta. Crude steel production registered a 23.5% drop in December compared to last November and an 11.9% increase compared to the same month of the previous year. For its part, the production of hot-rolled products had a 13.6% drop compared to last November and a 26.9% year-on-year increase.
DEMAND ANALYSIS IN OTHER SECTORS AGRICULTURAL MACHINERY 2025 closed with a deceleration, although slightly above 2024; 2026 will depend on a more stable economic scenario and a good harvest. WHITE LINE 2025 closes in a critical scenario, with volume drop, oversupply and importer pressure.
