# 🇦🇷 Argentina Steel Producers

MIFUS Course: A Journey Through Global Steel Decarbonization

Special Acknowledgment: We gratefully acknowledge the valuable contributions and corrections provided by Carlos Cicutti (Tenaris) and André Costa e Silva, whose expertise has significantly improved the accuracy and completeness of this document, particularly regarding Tenaris Siderca's operations and decarbonization initiatives in Argentina.

### 🎯 Technology Types

BF/BOF (Integrated)
EAF (Mini-mill)
DRI-EAF
Mixed Technologies
Renewable Energy (Wind Farms)

## 📊 Argentina Steel Industry Overview

- Total Production: ~4.5 million metric tons crude steel annually
- Global Ranking: Latin America's 3rd largest producer (after Brazil and Mexico)
- Major Producers: Ternium Siderar, Tenaris Siderca, Acindar (ArcelorMittal), Gerdau
- Technology Mix:
  - Integrated BF/BOF: Ternium Siderar (flat products)
  - DRI-EAF: Tenaris Siderca (seamless pipes for energy sector)
  - EAF: Acindar, Gerdau (long products for construction)
- Key Markets: Construction (dominant), automotive, oil & gas (OCTG and line pipe), industrial applications
- Strategic Importance: Vaca Muerta shale formation driving demand for high-quality OCTG; construction sector growth dependent on infrastructure investment
- Trade Position: Net exporter of seamless pipes (Tenaris), semi-finished steel (Ternium); importer of some flat products and specialty steels
- Economic Context: Industry affected by macroeconomic volatility, inflation, currency fluctuations, and energy supply challenges

## 🌱 Decarbonization Initiatives in Argentina

- Tenaris Siderca - Campana (Leading Decarbonization Effort):
  - New Consteel® EAF (2024): State-of-the-art electric arc furnace with continuous scrap feeding technology; replaces older EAF; improves energy efficiency and reduces emissions
  - Renewable Energy Integration: Two wind farms providing clean electricity:
    - Buena Ventura Wind Farm (Operational 2023): Located in Adolfo Gonzales Chaves, Buenos Aires Province
    - La Rinconada Wind Farm (Under Construction, Operational end-2025): 21 turbines, 94.5 MW capacity, $214 million investment; located in Olavarría, Buenos Aires Province; will reduce CO₂ emissions by ~100,000 tons/year
    - Combined Impact: Total investment >$400 million in renewable energy over 4 years; will cover electricity needs of Siderca facility
  - DRI-EAF Technology: Two electric arc furnaces fed with scrap and direct reduced iron (DRI) produced on-site; inherently lower emissions than BF/BOF; position for future hydrogen-based DRI transition
  - Production Process: EAF → Ladle Furnace → Continuous Casting → seamless pipe manufacturing; all steel for seamless pipes cast at Campana facility
  - Strategic Positioning: Techint Group commitment to decarbonization; Tenaris global decarbonization targets aligned with energy transition
- Ternium Siderar - San Nicolás:
  - Vientos de Olavarría Wind Farm: $225 million investment; reduces CO₂ emissions by 111,000 tons/year; supplies clean electricity to integrated mill
  - BF/BOF Modernization: Energy efficiency improvements; investigating hydrogen injection and carbon capture pathways
  - Circular Economy: Scrap utilization in steelmaking; by-product recovery and reuse
- Acindar (ArcelorMittal Argentina): EAF-based production inherently lower carbon; energy efficiency programs; renewable energy procurement under consideration
- Gerdau Argentina: Scrap-based EAF operations; part of Gerdau's regional sustainability commitments; renewable energy integration initiatives
- Regional Challenges & Opportunities:
  - Energy Supply: Natural gas availability supports DRI; hydroelectric potential in some regions; wind and solar resources (particularly in Buenos Aires and Patagonia)
  - Economic Volatility: High inflation, currency instability affecting investment capacity; government support for renewable energy projects variable
  - Regulatory Environment: Carbon pricing mechanisms under discussion; increasing environmental standards; potential for carbon border adjustment impacts on exports
  - Future Pathways: Continued EAF expansion; hydrogen-ready DRI technology; biomass use in some applications; carbon capture for remaining BF/BOF operations

## 🏭 Major Steel Producers - Detailed Information

- Ternium Siderar - San Nicolás (Integrated Mill):
  - Capacity: 2.8 Mt/year crude steel
  - Technology: Blast Furnace → BOF Converter → Ladle Metallurgy → Continuous Casting
  - Products: Flat products (hot-rolled, cold-rolled, coated sheets); serving automotive, construction, appliances, energy sectors
  - Ownership: Part of Techint Group
  - Strategic Position: Argentina's largest flat products producer; supplies automotive OEMs, construction industry, manufacturing sector
- Tenaris Siderca - Campana (DRI-EAF Seamless Pipe):
  - Capacity: ~1.2 Mt/year steel (two EAFs); significant seamless pipe capacity
  - Technology: DRI Production (on-site) + Scrap → EAF → Ladle Furnace → Continuous Casting → Seamless Pipe Manufacturing
  - Products: Seamless pipes for oil & gas (OCTG, line pipe); industrial applications; premium connections
  - Innovation: New Consteel® EAF with continuous scrap feeding (operational 2024); 70 years of industrial excellence (1954-2024)
  - Renewable Energy: Two wind farms providing clean electricity (Buena Ventura operational, La Rinconada under construction)
  - Ownership: Part of Techint Group (Tenaris)
  - Global Integration: Part of Tenaris global network; exports to worldwide energy markets; serves Vaca Muerta shale development
  - Welded Pipes: Note - Tenaris also produces welded pipes (not at Siderca); all steel for seamless pipes is produced at Campana
- Acindar (ArcelorMittal) - Villa Constitución (EAF Long Products):
  - Capacity: 1.1 Mt/year
  - Technology: Electric Arc Furnace (scrap-based)
  - Products: Long products (rebar, wire rod, merchant bars) for construction and industrial sectors
  - Market Position: Argentina's largest long products producer
  - Ownership: ArcelorMittal
- Gerdau Argentina - Buenos Aires Area (EAF Long Products):
  - Capacity: ~0.5 Mt/year
  - Technology: Electric Arc Furnace (scrap-based)
  - Products: Long products for construction (rebar, wire products)
  - Integration: Part of Gerdau's South American network
- Tenaris Siat - Valentín Alsina (Welded Pipes):
  - Products: Welded steel pipes for various applications
  - Technology: Welded pipe manufacturing (processes coils into pipes)
  - Market: Domestic and regional customers

## ⚡ Energy & Infrastructure Context

- Natural Gas Resources: Argentina possesses significant natural gas reserves (Vaca Muerta shale); supports DRI technology; enables potential blue hydrogen production pathway
- Renewable Energy Potential:
  - Wind: Excellent wind resources in Buenos Aires Province and Patagonia; multiple steel industry wind farm projects operational or under development
  - Solar: High solar irradiation in northern and central regions; increasing solar project development
  - Hydroelectric: Some hydroelectric resources in northern regions
- Electricity Grid: National grid connects major industrial centers; some capacity constraints during peak demand; renewable energy integration increasing; grid modernization needed for large-scale EAF expansion
- Scrap Availability: Growing scrap generation from urbanization and industrialization; organized collection networks (Gerdau, Acindar); quality improving over time; imports supplement domestic supply
- Energy Supply Challenges: Historical gas and electricity supply constraints affecting industrial operations; government subsidies reduction impacting energy costs; reliability improvements needed for continuous operations
- Iron Ore: Limited domestic iron ore resources; Argentina imports iron ore and DRI/HBI for integrated mills and some EAF operations

## 📈 Market Dynamics & Vaca Muerta Development

- Vaca Muerta Shale Formation:
  - Significance: One of world's largest unconventional oil and gas resources; comparable to U.S. Permian Basin
  - Development Status: Rapidly expanding production; new pipeline infrastructure connecting to ports; LNG export facilities planned
  - OCTG Demand: High-quality seamless pipes required for horizontal drilling and hydraulic fracturing; Tenaris Siderca primary supplier; opportunities for expanded local services
  - Infrastructure Needs: Line pipe for oil and gas pipelines; major pipeline projects under construction (e.g., Vaca Muerta to Puerto Rosales)
- Construction Market: Highly dependent on economic growth and infrastructure investment; government infrastructure programs; urban housing development; sensitivity to economic cycles
- Automotive Sector: Important market for flat products (Ternium); Argentina-Brazil automotive integration; affected by regional economic conditions; electric vehicle transition considerations
- Trade Dynamics:
  - Exports: Seamless pipes (Tenaris global network); semi-finished steel; some flat products to neighbors
  - Imports: Specialty steels; some flat products; DRI/HBI; iron ore
  - Mercosur Integration: Regional trade agreements; but also intra-regional competition
- Economic Challenges:
  - Macroeconomic Volatility: High inflation, currency devaluation, exchange controls affecting operations and investments
  - Policy Uncertainty: Frequent changes in government policies, export/import regulations, energy subsidies
  - Labor Relations: Strong unions; collective bargaining; wage demands in high-inflation environment
  - Competitiveness: Need to maintain cost competitiveness despite economic challenges; importance of productivity improvements and technology investments

## 🌍 Decarbonization Roadmap & Future Outlook

- Near-term (2025-2030):
  - Complete La Rinconada wind farm (Tenaris, end-2025)
  - Optimize Consteel® EAF operations at Siderca
  - Expand renewable energy procurement across steel sector
  - Improve energy efficiency at existing facilities
  - Increase scrap utilization rates
- Medium-term (2030-2040):
  - Transition Ternium Siderar BF/BOF to lower-carbon pathways (hydrogen injection, carbon capture, or eventual EAF conversion)
  - Develop hydrogen infrastructure leveraging natural gas resources
  - Scale up renewable energy integration (additional wind/solar projects)
  - Modernize grid infrastructure for increased electrification
  - Implement circular economy practices across value chain
- Long-term (2040-2050):
  - Achieve near-zero emissions across Argentine steel sector
  - Green hydrogen DRI-EAF technology deployment
  - Position Argentina as low-carbon steel exporter (particularly seamless pipes for energy transition)
  - Full integration of renewable energy (target >80% clean electricity for steel sector)
- Investment Requirements: Estimated $5-8 billion needed for full sector decarbonization; mix of private investment (Techint Group, ArcelorMittal, Gerdau), development finance, climate funds; policy certainty crucial
- Competitive Advantages:
  - Tenaris global technology leadership and customer relationships
  - Excellent renewable energy resources (especially wind)
  - Natural gas for blue hydrogen pathway
  - Vaca Muerta development driving local demand
  - DRI-EAF technology already proven at commercial scale
- Policy Needs: Stable energy policy and pricing; support for renewable energy projects; carbon pricing mechanisms; clear decarbonization targets and timelines; protection from unfairly traded imports; facilitation of green steel exports

## 📚 Resources & References

Special thanks to Carlos Cicutti (Tenaris) and André Costa e Silva for their valuable contributions and corrections.

Information sources:

- Global Energy Monitor - Global Iron and Steel Tracker
- Tenaris Corporate Website
- Tenaris Annual Report 2024
- Tenaris Wind Farm Announcements
- Tenaris Consteel® EAF Information
- Ternium Corporate Website
- GEM.wiki - Steel Plant Database
- World Steel Association, ALACERO, company reports and announcements

Note: This map represents major steel producers in Argentina. Click markers for detailed facility information and links to additional resources.