Metalworking Sector: Boom in International Trade

Although there are free trade agreements with many countries that import metalworking products, national companies are unable to fully exploit this valuable factor. The importance of the metalworking sector in the Peruvian economy lies in its close relationship with various industries, as it provides intermediate goods and final capital goods to key sectors such as manufacturing, automotive, agriculture and mining.

The Foreign Trade Research and Development Corporation – CCL (Idexcam) highlights that the prosperity of industrialized countries is due in part to a strong metalworking sector. In this context, we explore the need and potential to develop this sector in the Peruvian economy, taking advantage of the opportunities offered by current trade agreements.

This sector covers all aspects related to metal production, from evolution and industrial change to obtaining sheets, rods and plates. These materials can be processed to make products for daily use such as kitchens, washing machines or computers, and products for industrial use such as boilers, heavy machinery and industrial ovens.

Internationally, the most developed countries in the metalworking industry such as USA, Japan, China, Germany, South Korea and Spain stand out for having a rich sector. Companies from these countries establish multinational subsidiaries in various countries, import machinery and advanced technology to promote industrial growth.

In the specific case of Peru, exports from the metalworking sector fell by an alarming 24.59% at the end of 2020, according to Sunat's data. This drastic decline is prompting entrepreneurs in the sector to rethink their strategies to recover lost ground.

See also  How is the economic traffic light?

Analyzing growth opportunities globally, some Peruvian products in the sector have significant potential. Tin lids, for example, are in high demand in markets such as France, the United Kingdom and Germany, despite a 10% drop in exports in 2020.

Although intercity bus exports are low compared to powers such as Mexico and South Korea, Peruvian exports are projected to increase by 4% in 2020, with opportunities in markets such as France, Germany and the Philippines. In 2020, Peruvian exports of generating sets experienced a 13% increase, eclipsing destinations such as the United States, Canada and the United Arab Emirates.

In addition, pot set, with an impressive 153% increase in exports in 2020, is driving global demand, particularly in countries such as Colombia, Ecuador and Brazil. Metal crown caps are finding markets in Brazil, United States and several European countries, with an export value of USD 3.9 million in 2020. Considering these opportunities, it is urgent to undertake business sector restructuring to adapt to the new conditions of the local industry and to satisfy the demands of the international markets.

Read more

Local News