Ternium Announces Strong Recovery in H1 of 2021
Ternium's steel shipments in the first half of 2021 were 6.2 million tonnes, up 720,000 tons compared to shipment levels in the same period in 2020 mainly reflecting the impact of the COVID-19 outbreak in the prior-year first half. Shipments in the first half of 2021 increased 22% in Mexico and 74% in the Southern Region, and decreased 22% in the Other Markets region as the company's slab facility in Brazil increased its integration with other Ternium's mills.
EBITDA per tonne increased USD 305.2 YoY in the first half of 2021 to USD 401.7, mainly due to higher steel prices, partially offset by higher cost per tonne. The increase in cost per ton mainly reflected higher cost of raw materials, purchased slab and energy, and higher maintenance expenses, partially offset by the positive impact on costs of higher mill utilization rates.
The company's net income in the first half of 2021 was USD 1.6 billion on operating income of USD 2.2 billion
Ternium expects continued solid financial performance throughout the remainder of 2021, largely due to the currently strong global steel market environment. The company anticipates EBITDA to increase sequentially in the third quarter, along with a higher margin and increased volumes. Realized steel prices in the third quarter are expected to continue increasing in all regions, partially offset by higher cost per ton due to higher raw material costs gradually flowing through the company's inventories.
In Mexico, Ternium is ramping up a new flat steel hot-rolling mill at its industrial center in Pesquería after a successful start-up in May 2021. To meet continued strong demand for steel products in the region, Ternium anticipates this new facility to increase the company's offering of high-quality steel products by approximately 600,000 tons over the remainder of the year.
In Argentina, the company expects shipments to remain relatively stable in the third quarter of 2021 compared to the second quarter of the year, supported by sustained domestic demand for building materials and higher activity levels in certain industrial sectors, including automotive and agribusiness.
In Brazil, Ternium anticipates shipments to third parties from its slab facility in Rio de Janeiro to decrease in the third quarter of 2021 compared to the second quarter of the year, primarily due to increased integration of this facility with other facilities in Ternium's own industrial system.