Source: Argus Media
Mexican steelmaker Ternium expects strong domestic steel sales and pricing to continue through the first half of 2027 after posting record third-quarter shipments in Mexico. The company continues to take market share from imports, while growing demand from infrastructure, energy, and data center projects should support sales in the coming quarters, executives said on a November 4 earnings call.
Chief Executive Maximo Vedoya indicated that prices will continue to hold at current levels or move slightly higher. The company recently notified customers of another $25 per metric tonne price increase effective in November. Ternium said prices in Mexico will continue to move in line with the US market, which has experienced a sustained price rally since Washington raised Section 232 steel tariffs to 50 percent.
Mexico domestic hot-rolled coil prices rose to $1,035.80 per tonne on October 30, up 35 percent from the start of the year, according to Argus data. In Mexican pesos, prices surged 42 percent to Ps19,475 per tonne as the dollar strengthened. Ternium's third-quarter Mexico steel shipments increased 18 percent year-on-year to a record-high 2.18 million tonnes, supported by stricter trade defense measures that sharply reduced import competition. Mexico has also adopted measures requiring federally funded public projects to prioritize domestically produced steel.
Ternium adopted a more cautious outlook for Brazil, where steel shipments fell 1 percent year-on-year to 984,000 tonnes in the third quarter. Imports from Vietnam, South Korea, and Egypt continue to pressure the market despite Brazil's anti-dumping efforts, as importers shifted purchases to other Asian suppliers after duties were imposed on most Chinese steel products. The company expressed mixed sentiment about Argentina, where Vaca Muerta energy projects support steel demand but a struggling economy weighs on other sectors.
Ternium swung to a profit of $368 million in the third quarter from a loss of $270 million a year earlier, supported by higher steel shipments and stronger realized prices.
