From the Chilean metallurgical industry they point out that they have experienced a September “against cyclical” with respect to the national economic activity, since although the economic activity of the month recorded a null variation, the aforementioned sector had a 8.6% boost.
With this, the accumulated production index in the first nine months of the year reaches -1.9%, compared to the 3% drop registered in August.
Despite the good news, the president of the Association of Metallurgical and Metalworking Industries (Asimim)Fernando García, He said that the September result is the result of the low comparative base, since negative records were recorded in the previous four months.
An example of this is that in the last twelve months, the activity of this industry is 8.5% below what was achieved in 2018.
The closure of Huachipato begins to hit the steel industry
Furthermore, García issued a warning by commenting that “the closure of the Compañía Siderúrgica Huachipato (CSH) is already beginning to be reflected in the sectoral results, and we believe that this cessation of the company’s activities will affect the performance of the sector at a national level for, at least, the next eleven months.”
Specifically, the arrest of Huachipato translated into a significant drop in the subsector “Basic iron industry”, which fell 23.1% due to lower production of steel or iron bars and rods.
Going forward, the union leader predicts that the metallurgical industry will close the year with a drop in production between 2% and 3%.
Investments and recovery
However, the president of Asimet highlighted that the subsector of “Manufacturing of metal products for structural use, tanks, deposits, metal containers and steam generators” increased its production by 25% interannual, favored by greater demand thanks to new projects, mainly mining.
Finally, García emphasized the need to attract investments for infrastructure, while promoting the construction recovery.
For the leader, investments in industries are key to the growth of the national economy, “whose latest figures have been quite disappointing.”
“The industry is the productive base of the economy and generates quality jobs, direct and indirect; “It contributes to economic diversification and encourages research and development of new technologies, which is why it is crucial to invest in it,” concluded Fernando García.
Chilean Metallurgy: Riding the Rollercoaster of Economic Activity
Well, well, well! It turns out the Chilean metallurgical industry was experiencing a bit of a “non-traditional” September, almost like wearing socks with sandals at a barbecue—completely out of place. While the national economic activity decided to take a lazy nap and recorded a grand total of zero growth, our metallurgical chums flexed their muscles with an impressive 8.6% boost! Talk about a desperate attempt to look good at the family reunion!
Now, here’s where it gets interesting: the accumulated production index for the first three quarters of the year is limping along at a cool -1.9%. That means it’s as much fun as getting our toes stepped on at a concert! August didn’t treat us any better with its 3% plummet. You can almost hear the industry singing in unison, “We’re down but not out!” It’s like watching a soap opera, really: just when you think they’ve hit rock bottom, they find a way to dig deeper.
Fernando García and the Four-Month Fiasco
Enter the president of the Association of Metallurgical and Metalworking Industries (Asimim), Mr. Fernando García. Now, if we’re handing out awards for optimism, he’d definitely be on the shortlist—though it seems a bit misplaced considering the context! García mentions that September’s rosy figures are merely a mirage created by the low comparative base. In layman’s terms, it’s like claiming victory in a race because the other runners forgot to show up for four months. Talk about lowering the bar!
For fun, let’s do a quick math check: over the past year, the metallurgical activity is now hovering 8.5% below what it could have been back in 2018. It’s like trying to sell last year’s holiday cracker jokes; no one wants it!
Huachipato’s Impact: A Steel Curtain Call
Now onto the heavyweight title match—the closure of the Compañía Siderúrgica Huachipato (CSH). García warns this shutdown is starting to leave its mark, much like an uninvited guest crashing your party and leaving chaos in their wake. He’s predicting that the adverse effects will linger around for at least eleven more months. Talk about a long goodbye!
To illustrate—the subsector for Basic Iron Industry has taken a 23.1% hit. That’s like trying to make a nice stew and realizing you’ve run out of vegetables! No steel bars or iron rods? Let’s just say that’s quite a recipe for disaster.
Optimism in Metal Products: A Glittering Detail
But hold your horses—or should I say horseshoes? Amidst the doom and gloom, our industrious metallurgical comrades are not entirely down in the dumps. The subsector focused on metal products for structural use has surged ahead with a dazzling 25% increase thanks to a growing appetite from new mining projects. I mean, give a metal worker a shiny new project and suddenly they’re the Avengers of the economy—saving the day one tank at a time!
Investments: The Silver Lining that Needs a Treasure Map
So, what’s the takeaway? García emphasizes the dire need for infrastructure investment and a stranglehold on the construction recovery. Picture it: without investment, the industry’s like a metal detector that keeps beeping but finds nothing but rust! He asserts that investing in industries is paramount for growing the national economy, a quest that has been less exciting recent figures.
In his grand finale, García hits the nail on the head—pun intended! He proclaims, “The industry is the productive base of the economy and generates quality jobs.” This guy means business! So let’s keep our fingers crossed the funds start rolling in, or else we might find ourselves with nothing but tales of failed projects and a stash of hardly amusing metal puns.
In conclusion, while Chile’s metallurgy may be battling many challenges, from declining production figures to headwinds from the closure of key facilities, there are glimmers of hope on the horizon. With optimism akin to a comedian trying to make a career out of dad jokes, let’s hope that investments pour in soon so we can finally have some metal action worth celebrating!
The Chilean metallurgical industry has reported a surprising September performance that diverged from the broader national economic trends, experiencing a robust 8.6% increase in activity, even as the overall economic index for the month stood stagnant with a null variation.
As a result of this volatility, the cumulative production index for the first nine months of the year has reached -1.9%, reflecting a shift from the 3% decline recorded in August, offering a glimmer of hope amidst ongoing challenges.
Despite the positive news, Fernando García, president of the Association of Metallurgical and Metalworking Industries (Asimim), cautioned that the September surge can largely be attributed to a low comparative base, considering that the sector endured negative performance for four consecutive months prior to this recovery.
Notably, over the past twelve months, the metallurgical sector remains about 8.5% lower in output compared to figures from 2018, underscoring ongoing struggles in the industry.
The closure of Huachipato begins to hit the steel industry
Moreover, García issued a serious warning regarding the implications of the “closure of the Compañía Siderúrgica Huachipato (CSH),” stating that its impact is beginning to significantly influence sectoral results, with expectations for this decline to affect national performance for at least the next eleven months.
The shutdown of Huachipato has notably led to a dramatic 23.1% decrease in the “Basic iron industry” subsector, attributable to dwindling production levels of steel and iron bars and rods.
Investments and recovery
Contrastingly, García pointed out that the subsector dedicated to the “Manufacturing of metal products for structural use, tanks, deposits, metal containers and steam generators” enjoyed a remarkable 25% year-on-year growth in its production, driven by heightened demand linked to new mining projects.
To foster a sustainable recovery, García underscored the critical need for attracting investments in infrastructure, which would promote renewed construction activity and bolster the sector.
According to García, these investments in industrial growth are vital for reinvigorating the national economy, which has been grappling with lackluster figures recently.
He emphasized that “the industry forms the backbone of the economy, creating quality jobs—both direct and indirect; it plays a crucial role in economic diversification and encourages research and development of cutting-edge technologies. Therefore, investing in this sector is of utmost importance,” concluded Fernando García.
Challenges that the industry faces in its quest for stability and growth.
The Impact of Huachipato’s Closure
Additionally, García raised concerns regarding the impending repercussions of the closure of the Compañía Siderúrgica Huachipato (CSH). He warned that the negative effects from this significant shutdown are already beginning to manifest within the sector, predicting that performance could be adversely affected for at least another eleven months. The effects on the Basic Iron Industry have been particularly pronounced, with production plummeting by 23.1% as a direct result of diminished output of steel and iron products.
Positive Developments in Metal Product Manufacturing
In a more upbeat turn of events, García highlighted the fact that the subsector responsible for the manufacturing of metal products for structural use—including tanks, containers, and steam generators—has recorded a remarkable 25% year-on-year increase in production. This growth has been spurred by heightened demand, particularly from mining projects, signaling potential areas for recovery amidst broader struggles.
The Need for Investment and Forward Planning
García emphasized that attracting further investment in infrastructure is critical for the sector’s recovery and the overall improvement of the national economy. Given the disappointing recent economic figures, there remains a strong need for renewed focus on industrial investments. García famously articulated the vital role of the industry as “the productive base of the economy,” stressing its importance in generating quality employment and fostering economic diversification and technological advancement.
In sum, while the Chilean metallurgical industry is clinging to some hopeful indicators amidst significant obstacles, the road to recovery seems contingent upon addressing foundational issues through investment, innovation, and strategic planning. If the required investments are realized, there could be a bright future ahead for metallurgy in Chile, turning current challenges into opportunities for long-lasting growth.