Latin America-focused steelmaker Ternium said it expects EBITDA in Q1 this year to be higher when compared to Q4 2020 due to stronger steel selling prices and steady shipments.
The company posted increased net revenues for both its Mexican and Southern segment regions in Q4 2020, as reported by SteelOrbis. In Mexico, Ternium expects steel sales volumes to remain stable in Q1, with strong demand from industrial customers, which will be driven by finished goods exports.
“The commercial market in the country, which is primarily driven by (civil) construction activity, is expected to remain relatively unchanged. Extreme weather conditions in the southern United States and northern Mexico disrupted the stable provision of natural gas and energy in these markets, negatively affecting production in the first quarter for approximately 80,000 mt,” the company said.
As for the Southern region, which includes Argentina, Ternium expects steel sales volumes in Q1 to remain at high levels.
“The company anticipates third-party shipments from its slab facility in Brazil to decrease sequentially in the Q1 2021, primarily due to a significant increase in intercompany transfer,” the company added.