Mexican steelmaker Ternium expects strong domestic steel sales and pricing to continue through the first half of 2027 after posting record domestic shipments in the third quarter.
The company continues to take market share from imports to Mexico, while growing steel demand for infrastructure, energy and data center projects should support sales in the coming quarters, executives said on a 4 November earnings call.
"Prices will continue to hold at this level or a little bit up," chief executive Maximo Vedoya said.
The company recently notified customers of another $25/metric tonne (t) price increase effective in November, market participants said.
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 50pc.
Mexico domestic hot-rolled coil (HRC) prices rose to $1,035.80/t on 30 October, up by 35pc from the start of the year, according to Argus data. In Mexican pesos, prices surged by 42pc to Ps19,475/t as the dollar strengthened.
Ternium's third-quarter Mexico steel shipments increased by 18pc on the year to a record-high 2.18mn t, supported by stricter trade defense measures that sharply reduced import competition.
Mexico has also adopted measures to support domestic steelmakers, requiring federally funded public projects to prioritize domestically produced steel.
South America
Ternium adopted a more cautious outlook for Brazil, where steel shipments fell by 1pc on the year to 984,000t in the third quarter.
Imports from Vietnam, South Korea and Egypt continue to pressure the market despite Brazil's efforts to curb imports through trade defense measures, while indirect steel imports remain a concern, the company said.
Brazil imposed anti-dumping duties on most Chinese steel products, but importers shifted purchases to other Asian suppliers. Egyptian steel, meanwhile, benefits from a bilateral trade agreement that grants tariff-free access to the Brazilian market.
The company expressed mixed sentiment about Argentina, where Vaca Muerta energy projects continue to support steel demand, but a struggling economy and rising imports continue to weigh on other sectors. Shipments to the southern region rose by 1pc to 560,000t, while sales to other markets declined by 11pc to 318,000t.
Ternium swung to a profit of $368mn in the third quarter from a loss of $270mn a year earlier, supported by higher steel shipments and stronger realized prices.
