Ternium's new electric arc furnace (EAF) at its Pesqueria, Mexico, mill will buy iron ore pellets on the open market, its chief executive said today at a conference.
The new 2.6mn metric tonne/yr electric arc furnace will be built alongside a 2.1mn t/yr direct reduced iron (DRI) plant.
Although Ternium produces its own iron ore pellets, the company will also look to buy pellets from the commodity market to supply Pesqueria, which could include a partnership with iron ore miner Vale, chief executive Máximo Vedoya said at the Global Steel Dynamics Forum in New York.
The company announced the site selection for the plant on 20 June after first laying out plans for the project in February.
Slabs produced in Brazil and shipped to Pesqueria for rerolling would be switched to being consumed at Usiminas in Brazil, Vedoya said.
Ternium and its sister company Tenaris grew their share of Usiminas to 61.3pc in March, with the remainder owned by Japanese steelmakers Nippon Steel, Mitsubishi and MetalOne.
