Latin America-focused steelmaker Ternium said it expects higher realized steel prices in Mexico in Q2. The improved prices in Q2 will take place as prices in the USMCA market “continue to increase and quarterly contract prices reset, with a lag, at higher levels than in Q1 2021.”
The steelmaker said steel sales volumes in Mexico are also forecasted to improve, with a strong demand coming from the exports-driven industrial customers and a “steady” activity in the commercial market.
On the other hand, Ternium unveiled a sluggish scenario for both its Argentinian and Brazilian operations in Q2 this year.
“In Argentina, the company anticipates shipments to remain relatively stable in Q2 2021 compared to Q1, supported by sustained domestic demand for durable goods and building materials,” the company said.
In Brazil, where the company operates through slab producer Ternium Brazil, steel sales volumes to third parties in Q2 should decrease, on a quarter-over-quarter basis, “primarily due to increased integration of (the Ternium Brazil facility) with other facilities in Ternium’s industrial system,” the company said.