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“Latin America is one of the highest steel use growth rate in the world in the last five years especially in 2012 and 2013. Second, the steel intensity in Latin America give us the opportunity for growing. If we compare the steel intensity of Latin America is less than half of the one in USA and Canada, one fifth of the one in China and one third of the one in the European community though that makes us an interesting opportunity for growth through the intensity of use of steel.”
“at the end, the overcapacity factor is having an important impact in the global pricing system of the steel industry. But in my view, it has to reanalyze on a regional basis instead of on a global basis. And you can see here the steel overcapacity in the region where we operate Ternium is quite low”
“You know that Latin America now is consuming 70 million tons, 67 million tons of steel per year. USA and Canada are consuming together 110 million tons of steel per year. So, all together, we are in a region where it’s being consumed 180 million tons of steel out of 1.5 billion tons of total steel consumption worldwide.”
“80% of the steel of Latin America is being consumed mainly by three countries, 80%, Brazil, Mexico and Argentina. ”
“Latin America, as a whole, is importing 17.5 million tons of steel, the main importer being Mexico with a little bit less than half this amount 7.4 million tons per year. Imports representing 37% market share in Mexico. Then we have Brazil that is importing 3.6 million tons of steel that represent 14% of the apparent steel use of Brazil. Colombia is importing 50% of the apparent steel use; Peru, Chile, Argentina and others.”
“the EBITDA ratio of Ternium is 15%. Long per user in the U.S. is having to 11%. Flat-rolled per user in Mexico, one of our peers is having 9.4%. USA Minimill 8.6%, Global Player average 8.4%, USA Integrated flat-rolled mill is having 5.4%.
So looking backwards or looking this performance why we consider that we are outperforming our peers? Well, first, because we have a focus on high value added products. Second, because we do have a flexible production configuration that means that we have blast furnaces, we have guided reduction and we have the slabs rolling. We have a level of upstream and downstream integration that also outperformed the one of our competitors.
We have a very broad distribution network. And looking forward, we believe that we are working very hard in breaking through learning curve effects through innovation in order to continue gaining market share – gaining productivity, gaining competitiveness vis-à-vis our competitors.”