Ternium, the largest flat steel producer in Latin America, is gaining market share in Mexico and the US, according to remarks by Maximo Vedoya, Ternium's global CEO, in an investor call. In addition, from the perspective of its clients, the US will have a weakening in production and not a recession due to the monetary policy of that country.
Vedoya told investors that the company “in Mexico and in the United States also we are gaining market share and industrial market (...) What is going to happen in the second half of the year? We are still seeing a demand that is robust. We are not seeing things that can change the demand we are seeing today.”
In the first quarter of the year, Ternium recorded a historical record in sales volume with 3.07 million tons shipped. Of that total, Mexico contributed 68.4 percent of the total with 2.1 million tons.
The CEO also said that his clients in the industrial market are increasing their purchases. He said that given the certification process that customers do for their products, their sales volume could increase up to an additional thousand tons, although this might not be reflected until next year.
Vedoya also reported that the macroeconomic impact of raising interest rates to control inflation will lead to a recession in the United States. However, he said his clients are currently buying steel with the expectation of a weakening economy and not expecting a "huge recession."
On the location of their new $2.2 billion slab plant in the USMCA region, he said they are moving forward with the project, but cannot yet disclose the location where it will be built.