AHMSA expects better end-year results as local steel market starts to improve

Tuesday, 21 June 2016 23:32:11 (GMT+3)   |  
       

Mexico’s largest integrated steelmaker Altos Hornos de Mexico (AHMSA) expects better end of year results, as the local steel industry is gradually starting to improve despite the ongoing challenges.

“We’re doing well, the [domestic] market is slowly improving; however, so it’s not going to be that hard. If you’re in the steel industry, you can’t stop. You have to innovate, such as in the case of the specialty steel,” Luis Zamudio Miechielsen, general manager at AHMSA, said, while speaking to Mexican media.

AHMSA added it will keep in the pipeline its investment projects, which are focused on value-added products as well as high specification steel projects, such as for the automotive industry.

“Despite the unfair competition with China’s [steel], AHMSA is doing well. It’s gradually improving. Investment projects continue valid,” he stated.

As for its normalizing line supplied by Primetals Technologies, AHMSA said it’s currently at a “probe” phase and should starting producing, according to the company’s projects.

Competitor Ternium, which also operates in Mexico, sees better prospects for the Mexican market as well. Ternium told media that shipments to the industrial market continued growing in 2015, fueled by the home appliance manufacturers and the automotive industry.

Ternium’s shipments for the industrial customers in Mexico are expected to reach 3.2 million mt in 2016, up from 2.9 million mt in 2015.

Ternium said Tenigal’s current line is “fully devoted to automotive products, following a demanding certification process,” adding that it has “other expansions under analysis,” including a new galvanizing and painting line for industrial customers and a new service center for the automotive industry.

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