Ternium's Profits Leapfrog, Driven by Robust Demand and Pricing

SEATTLE (Scrap Monster): Luxembourg-based steel maker Ternium S.A. announced results for first quarter 2021. The company reported 250% surge in quarterly earnings, mainly driven by robust demand and pricing in Latin America. Furthermore, it anticipates favorable market conditions in future.

According to company press release, the company’s Q1 2021 EBITDA stood at $1.1 billion. The EBITDA margin was 33 percent and its EBITDA per ton was $341.10. The quarterly steel shipments stood at 3.1 million tons. The cost per ton increased, mainly due to higher costs of raw materials.

The manufacturing activity remained strong during the quarter in Mexico, which the company considers as its main steel market. Meantime, construction activity too witnessed gradual recovery. The Mexican steel shipments, at 1.7 million tons, surged higher by 3% from the year-ago as well as the sequential quarter.

Ternium’s activities in Argentina’s industrial and construction sectors too remained strong in Q1 2021. However, the shipments recorded decline from the prior quarter to total 620,000 tons. The finished steel shipments in “other markets” region have surged by 15%, when compared with Q4 2020.

The surge in realized steel prices, especially in Mexico, will likely deliver sequentially higher EBITDA in the second quarter of 2021.

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