According to the president of ASIMET, Fernando García, the 2% increase in internal demand reported by the Central Bank “did not generate a significant impact on our industry, since it occurred in areas that do not have a major impact for us.”
Chile's metalworking metallurgical sector registered a 4% decrease in its activity in March of this year, compared to the same period in 2023, thus marking negative growth for the second consecutive month. According to this evolution, the activity of this industry concluded the first quarter of 2024 with a variation of 0.1%.
This was announced by the president of the Association of Metallurgical and Metalworking Industries (ASIMET), Fernando García, who pointed out that this result “ratifies the concern that exists among industrialists in this productive sector, who view with concern the lack of investment and infrastructure for this year. The increase in domestic demand of 2% reported by the Central Bank this week did not generate a significant impact on our industry, since it was registered in areas that do not have a major impact for us," he said.
He also added that, based on these figures, the union maintains its growth projection for this year at around 1% to 3%.
García explained that the meager result of the sector in this period is mainly explained by a drop in demand for lifting and handling equipment from the mining sector, in addition to the decrease in projects aimed at the manufacture of metal products for structural use. Likewise, he indicated that as long as the Construction sector does not recover, it will be difficult for the metallurgical and metalworking sector to do so as well, as it is highly dependent on that industry.
In this regard, he warned about the need to reach agreements and advance on those transcendental issues for the productive sector, mainly in relation to the fiscal pact promoted by the Government, whose processing, according to García, has been extended beyond what is prudent, maintaining and worsening the climate of uncertainty that discourages investment attraction and growth.
“Finally, this generates greater formal unemployment and an increase in job insecurity. “Our manufacturing sector has the potential to create these quality jobs, but under current conditions, that capacity has been held back by the lack of investment in the sector,” he indicated.
Activity by subsectors
The president of ASIMET reported that of the nine subsectors that make up the industry, five registered positive variations, highlighting the performance of Repair of manufactured metal products, machinery and equipment, with a positive variation of 26.3%, contributing 3.2 points percentages of growth in the sector.
In contrast, the subsector of Manufacturing of metal products for structural use, tanks, deposits, metal containers and steam generators was the one with the lowest performance, registering a decrease in activity of 12%, subtracting 2.7 percentage points from growth to the sector.
15.2% drop in exports
Fernando García also provided foreign trade figures during the first quarter of this year, pointing out that, in terms of exports, the results were not encouraging either, totaling US$ FOB 515.9 million, which represented a drop of 15.2% compared to the similar period in 2023.
The main destinations of the shipments were Peru, the United States and Argentina, which together totaled US$ FOB ( Free On Board ) 217.7, which represents 42.6% of sales of the item in the international market.
In relation to imports, the union leader reported that China continues to be the main origin of acquisitions from the foreign market, with a record of US$ CIF ( Cost, Insurance, Freight ) 1,595.6 million, which represents 32. 4% of the total. They are followed by the United States, with US$ CIF 726.7 million, and Brazil, with US$ CIF 306.9 million, and a share of 14.7% and 6.2%, respectively.
The total imported corresponding to products from the metallurgical and metalworking sector in the first three months of the year was US$ CIF 4,932.2 million, a figure 6.2% lower than the imports registered in the same period of 2023.
