Ternium Argentina expects its Q1 2020 steel shipments to decrease to near Q1 2019 levels because of the South American nation’s precarious macroeconomic environment, which may result in diminished flat steel product consumption.
The company said it will adapt its facilities to the evolution of flat steel product demand this year.
Ternium Argentina’s 2020 investment plan will mainly focus on developing projects that improve efficiency, reliability, and processing technology, while also expanding the company’s product range. The company also committed to enhanced environmental and safety conditions in 2020.
In Q1 2019, Ternium Argentina’s steel shipments reached 3.2mn mt, down by 9pc from the same quarter one year ago when the company achieved 3.5mn mt, the company said in its earnings report.
Argentina’s flat steel consumption fell to 2.2mn mt in 2019 due to auto industry demand declining by 33pc and construction industry demand declining by 8pc, said the company.
In 2019, Ternium Argentina steel shipments reached 2.1mn mt, down by 10pc (225,100mt) from the prior year, because local market consumption declined.
Of the company’s overall steel shipments, 1.77mn mt serviced the local market, while 356,400mt, or 45.9pc, was exported to the Central and South American region, 41.1pc was exported to North America, and 13pc to Europe.