Brazilian flats producer Usiminas may re-evaluate the supply of slab to its Cubatao mill, located in the city of same name in the state of Sao Paulo, a media report from Estadao noted.
Currently, Usiminas has a slab supply deal with Ternium Brasil, former Companhia Siderurgica do Atlantico (CSA). Since the acquisition of CSA by Ternium, the supplied volumes of slab to Usiminas have been declining, Estadao noted. Eventually, Usiminas may need more slab as the country’s economy recovers.
Ternium has already indicated it will use Ternium Brasil to supply its demand for slab in Mexico. Ternium has announced an investment of $1 billion to build a new hot rolling mill at its Pesquería industrial center in Mexico.
Usiminas told Estadao that diversifying its suppliers of slab is part of the company’s strategy, given the country’s increased outlook. So far, the deal with slab supply deal Ternium Brasil continues.