Ternium weighs more anti-dumping cases as steel snarls trade talks with US

MEXICO CITY, Nov 11 (Reuters) - Latin American steelmaker Ternium is considering taking additional anti-dumping cases against imports, primarily from Asian countries, due to escalating trade tensions with the United States, according to Chief Executive Maximo Vedoya. Vedoya revealed that Ternium is likely to pursue more anti-dumping cases following their backing of recent petitions in Mexico.

The company aims to replace imports with local supply and accelerate a major new slab mill in Pesqueria, located just outside Monterrey, near the border with the United States.

Ternium has been the petitioner in several Mexican cases against Asian steel shipments in recent years. The steel sector has become a crucial aspect of the US-Mexico trade agenda as the trilateral agreement with Canada is under review. Vedoya emphasized that the paramount concern for North America is the strengthening of origin rules and alleviating the burden of US Section 232 tariffs on regional trade, which apply to steel and aluminum.

Although Ternium has experienced limited direct exposure to US tariffs as it has considerably reduced exports from Mexico to the United States, the company is primarily focused on gaining market share at home from imported flat steel, especially from Asian suppliers. Ternium's upcoming Pesqueria project, slated to commence production in February 2027, will require time to demonstrate its full potential due to the complexity of producing sophisticated products, necessitating certification and a gradual ramp-up.

Vedoya informed investors that the primary benefits of the project are anticipated to become visible in 2028, crediting the utilization of slab produced at Pesqueria over imported slab, which could augment $50 to $100 per ton in margin.

Ternium is also concentrating on enhancing performance at Brazilian steelmaker Usiminas. Vedoya disclosed that the company's controlling group stake in Usiminas was increased to just under 93% in February, with certain reports in August speculating that Ternium might acquire the company entirely. Vedoya clarified that improving productivity at Usiminas is their primary focus at present, emphasizing that their outlook for 2027 hinges, in part, on conditions in Brazil.