Tuesday, June 6, 2023

Metallurgical Sector Registers Four Months Of Positive Growth With 7.4% Growth In Q1 Economy

From Unlimited they comment that the fact responds to the extraordinary conditions of higher demand in the mining sector, so that the figures look “more moderate” in the coming months.

The Association of Metallurgical and Metalworking Industries (Assimet) termed the 7.4% growth projected during the first half of 2023 as “abnormal”.

That’s thanks to data for March, which meant a 1.9% increase, accumulating four months of positive performance, reported from the organization.

“Our industry has displayed great volatility since the beginning of the pandemic, which is why it has shown itself in this first quarter as a sector that is opposite to the growth that the national economy and, in particular, The manufacturing industry has registered.”, commented on the President by Asimette, Dante Arrigoni.

Manufacture of machinery for special use was the sub-sector which contributed the most to the increase in the figure with a growth of 10.1%. On the other hand, manufacturing of household appliances contracted by 13.9%.

Exports from the metallurgical and metalworking sector also presented positive figures, thanks to foreign sales of US$ FOB 608.5 million, a growth of 21% over the previous period.

The main shipping markets were Peru, Argentina and the United States. The main products exported with added value were copper wire; steel bars and profiles and machines and equipment for classifying, screening, separating, washing, etc.

With regard to imports, China continues to be the main player, with a figure of US$ CIF 1,360 million out of total imports of US$ CIF 5,260 million, down 25.5% compared to the first quarter of 2022.

High mining demand boosts metallurgical growth

“In this first quarter of the year we are seeing a significant increase in demand from the mining sector, which has underpinned the good performance of the sector, but it is likely that we will start to see more moderate figures in the coming months,” said Union President.

Therefore, this will be a one-time situation and may not necessarily reflect the industry trend in recent years.

Furthermore, Arrigoni expressed his concern about “the low productivity displayed in Chile”, which is expected to decline by 5.6% in the fourth semester of 2022.

“We all know that it is possible for a country to achieve economic growth without improving its productivity, but this type of growth is not sustainable over time. As we are very much in debt on this issue.”

Nation World News Desk
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