Head of analysis at the local branch of BBVA Research, Mr Miguel Leiva told BNamericas that Peru's strong economic growth is likely to attract new players to meet the increasing demand for steel,

Mr Leiva said that "In this context, we could see greater competition in the national market.”

The country's economy grew for the 13th consecutive month in September, with GDP in that month up 10.4%YoY national statistics and information bureau INEI reported. The government is forecasting up to 8.5% growth this year, while UK based investment bank Barclays Capital estimates it could reach 8.9%. For 2011, the bank is predicting 6% to 7% growth.

Meanwhile, Mr Leiva said that "local companies are carrying out investments in order to provide quality products and are looking to maintain a continuous supply of their products.”

Siderperu's net profit jumped 228% in the third quarter to PEN 8.92 million (USD 3.19 million) from PEN 2.72 million in the same period last year thanks to higher net sales, which rose 27.3%YoY to PEN 371 million from PEN 291 million. The cost of sales also increased to PEN 339 million from PEN 279 million in the year ago period.

Siderperu produces long and flat products at its plant in Ancash region's Chimbote city, which has liquid steel capacity of 520,000 tonne per year. The company is a subsidiary of Brazilian steel group Gerdau.

The other principal steelmaker in Peru, Aceros Arequipa, posted a net profit of PEN 26.2 million in the third quarter, compared with a net loss of PEN 16 million in Q3 of 2009, thanks to a decrease in sales costs.

(Sourced from BNamericas)