Ternium sees Mexico revenues drop in Q1

Thursday, 02 May 2019 00:19:36 (GMT+3)   |   Sao Paulo

Latin America-focused steelmaker Ternium saw net revenues for its Mexican business in Q1 drop 6 percent, year-on-year, to $1.42 billion, the company said on Thursday.

Ternium said steel sales volumes in Mexico in Q1 declined 12 percent, year-on-year, to 1.56 million mt, while revenue per metric ton reached $912/mt, 7 percent up, year-on-year.

The Southern Region reporting segment saw net revenues in Q1 fall 18 percent, year-on-year, to $386.2 million. Steel sales volumes in Q1 diminished 31 percent, year-on-year, to 442,300 mt.

On the other hand, the Other Markets segment posted net revenues of $850.8 million in Q1, 17 percent up, year-on-year. Steel sales volumes in Q1 rose as well from 1.10 million mt in Q1 2018 to 1.19 million mt in Q1 2019.

Ternium said Mexican steel prices will further decline in Q2 due to the delayed effect of industrial customers’ quarterly reset of contract prices, “which will continue reflecting the protracted steel price downturn between July 2018 and January 2019.”

“Overall, the Mexican industrial market should continue to exhibit steady steel demand in the Q2, coupled with moderate destocking at some automotive service centers. The Mexican commercial market’s performance should remain sluggish due to continued low construction activity, which affects the company’s shipments in the country,” the steelmaker said.

As for Argentina, the company said that despite a weak economic forecast, shipments are expected to “sequentially increase during Q2.”

“This anticipated increase should result from the gradual recovery of the local steel market and the eventual conclusion of the destocking in the country’s steel industry value chain,” the company said.

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