Once again, steelmaking group Ternium saw its Mexican division play a major role in its latest quarterly results, similarly to what happened in Q2, as reported by SteelOrbis.
Ternium said net revenues at the company’s Mexican Region totaled $1.17 billion in Q3, 10 percent up, year-on-year, as opposed to a decline of 30 percent, year-on-year, in the same period at its Southern Region, and a 1 percent growth at its Other Markets Region, totaling $452.5 million and $227.2 million, respectively.
The combined steel products net revenues for the three regions totaled $1.85 billion in Q3, 4 percent down, year-on-year.
“Steel market conditions in Argentina remained weak in Q3 2016, however, Ternium believes domestic steel demand has started to rebound,” it said, confirming Alacero’s and Ternium’s forecasts for the year to come released late in October during the Alacero conference.
“The automotive industry in the country continues to operate at a low capacity utilization rate, although domestic automobile sales have been growing in the past few months and auto exports to Brazil, the major export destination for Argentina’s car industry, should increase if expectations for an economic recovery in that country come to fruition. After a transition period in 2016, the company expects Argentina to return to growth in 2017,” it said.
As for its Mexican division, Ternium said the automotive and the household appliance industries are “steady,” while the civil construction segment is “weak” as a result of “low government infrastructure spending and a deceleration of private construction growth.”