Latin America-focused steelmaker Ternium saw net revenues in Q1 decline for all three market segments, including Mexico, the company said on Tuesday.
Ternium said revenues for its Mexico business fell 11 percent, year-on-year, to $1.26 billion. Likewise, revenues at its Southern Region segment decreased 11 percent, year-on-year, to $340.8 million. The Other Markets segment posted net revenues of $600.2 million, 29 percent down, year-on-year, the sharpest decline among the three businesses.
In terms of steel sales volumes, Mexico was the only market to report increased shipments, rising from 1.56 million mt in Q1 2019 to 1.64 million mt in Q1 2020, a 6 percent increase, year-on-year. On the other hand, the Southern Region segment saw steel sales volumes in Q1 decrease 14 percent, year-on-year, to 379,600 mt. The Other Markets segment posted reduced steel sales volumes of 968,900 mt, 19 percent down, year-on-year.
Ternium attributed the weaker steel sales volumes at its Other Markets segment to “changes in slab volumes shipped from Ternium’s Brazilian unit to third parties, as slabs shipped to other Ternium's facilities, mainly to Mexico, are netted out in the consolidation of Ternium’s financial statements.”
“The Colombian steel market, one of Ternium’s main markets for finished products in the region, was affected in the period by the imposition of mandatory lockdowns since March 20, 2020 related to the COVID-19 outbreak,” the company said.