Industrial activity in July recorded an improvement of 5.9% over the previous month according to estimates by the consulting firm FIEL. For the second consecutive month, the index showed an advance, although production is still 7.9% below July 2019 levels.
Raizen, which manages Shell’s service stations, increased fuel prices to 6.8% in the metropolitan area. Raizen is a joint venture between Royal Dutch Shell and the Cosan Group, with a presence in Argentina since 2018. It has more than 700 service stations, one of the most important refineries in the country and a lubricants plant. According to fuel marketing figures, it is the second-largest company for sale in the country.
Latam Airlines Group lost $890 million in the second quarter due to the impact of the pandemic. In Argentina, it is making progress with its departure from the country and has already dismissed 1,100 employees through voluntary redundancies.
In the first seven months of this year, the Argentine capital market in the local currency, increased by 75% compared to 2019 in the same period. Although this percentage must reduce by the effect of inflation (the year-on-year variation of the Argentine Consumer Price Index in July was 42.4%), the balance is still highly favourable. According to the National Securities Commission (CNV), total financing in July generated a positive variation of 28% in year-on-year terms and 76% compared to the previous month.
The European Union decided to suspend imports of citrus fruits from Argentina because a disease called black spot found in the merchandise sent from Tucumán and Jujuy. Up to now, 129,000 tonnes of citrus exported, representing around 85% of the total forecast. Imports of citrus from Argentina into the EU in 2019 totalled 166,843 tonnes for 155 million Euros. This year, with the pandemic, orange consumption increased sharply, and because of this, international prices also rose. Considering that the products affected by the ban represent 99% of the imports of the European block, a protectionist measure expected. Perhaps this is the real reason for the decision taken.