Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Mexican steelmaker Altos Hornos de México (Ahmsa) increased its crude steel production to170,000-180,000mt in March, from 100,000mt in January.


Ahmsa could lift its production after longs steelmaker Grupo Villacero, its new partner, injected funds to buy scrap, iron ore, and coal for steel production, Raúl Flores González, president of the Mexican Chamber of the Construction Industry in Coahuila told the media.


Ahmsa, in its bid to recapitalize its finances, had sold 55pc of its stake in the subsidiary Grupo Acerero del Norte to Alianza Minerometalúrgica Internacional (AMI), to Grupo Villacero in December 2020. Ahmsa had not responded to Davis Index’s queries on the matter at the time of the publication.


Alonso Ancira Elizondo, the former controlling shareholder, and chairman of Ahmsa left prison on Monday, Apr 19, after signing an agreement to spend $216.6mn to repair the damage caused by irregular sale of the Agro Nitrogenados fertilizer plant, with representatives of the Mexican government and Mexico’s oil company Petróleos Mexicanos (Pemex).


Ahmsa expects the government to approve its partnership with Alianza Minerometalúrgica Internacional (AMI) in H1, which will help in recovering its operational flows and production levels recorded in 2019.


Ahmsa’s sales fell by 50pc to MXN5.1bn ($246.8mn) in 2020, from MXN10.2bn in 2019.



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