As a way to fight the massive imports from China that have affected the Mexican steel industry, local ferroalloys producer Minera Autlan is looking at ways to reduce its operating costs.
“Our clients are facing lots of challenges. It’s been a difficult year,” a company’s executive told local media, while commenting the company’s goal of reducing costs. Like its clients, Autlan has also been hit by the decline of steel demand in Mexico, as less steel means less ferroalloys to be used at the local steelmakers.
Autlan said the local demand for steel isn’t growing at the expected rhythm, resulting in a decline in the prices of ferroalloys. According to the company’s Q2 results, sales fell 8 percent to MXN 1.04 billion.
Rivero Larrea, president of Minera Autlan’s administration council, said the company has been looking at ways to reduce operating costs. Since 2013, the company generates part of the electricity it uses. The executive added that it reached in 2015 an agreement to buy 100GW/hour of electricity from a utility producer.
In addition to reducing electricity costs, which play in important role for ferroalloy producers like Autlan, the company also plans to develop local providers of manganese, so it can supply Autlan’s ferroalloys plants, in addition to its own production.