Luxembourg headquartered steelmaker Ternium announced that its steel shipments of 3.0 million tons in the third quarter of 2022 were sequentially stable. On a year-over-year basis, steel shipments in the third quarter of 2022 were down 3% due to a decrease in the volume of slabs shipped to third parties, reflecting a higher integration of Ternium's facilities, partially offset by higher finished steel shipments.” In Mexico, steel shipments reached 1.7 million tons in the third quarter of 2022, increasing slightly compared to shipments in the second quarter of the year and in the prior-year third quarter. The auto industry is making some progress in dealing with its supply chain difficulties, although it remains below its production capacity. On the other hand, infrastructure investment remained subdued and high inflation and tighter monetary conditions had an effect on the manufacturing industry's demand for steel products. In the Southern Region, shipments were 584,000 tons in the third quarter, lower 3% sequentially and 7% on a year-over-year basis. In Argentina, limitations in connection with imports of intermediate goods have created certain bottlenecks in the manufacturing sector. On the other hand, activity in the construction sector and the demand for industrial products remained healthy in the period. In Other Markets, Ternium's steel shipments in the third quarter of 2022 were 666,000 tons, slightly below the levels achieved in the second quarter of the year. Compared to the third quarter of 2021, shipments decreased in the period, reflecting a 183,000-ton reduction in the volume of slabs shipped to third parties, partially offset by a 100,000-ton increase in finished steel shipments. Revenue per ton in the third quarter of 2022 was USD 1,364, down USD 108 sequentially and USD 107 compared to revenue per ton in the prior-year third quarter. In Mexico, realized steel prices decreased in the third quarter, reflecting the reset of contract steel prices at lower levels and a downward trend in spot steel prices in the local market. Operating income in the third quarter of 2022 was USD 526.2 million, with adjusted EBITDA of USD 679.4 million and adjusted EBITDA per ton of USD 229. Ternium expects a lower adjusted EBITDA in the fourth quarter of 2022 compared to the third quarter, as a temporary mismatch between a decline in realized steel prices and high costs per ton should result in a decrease in the steel margin. Despite current raw material prices being considerably lower across the global market than in the first half of 2022, when Russia’s invasion of Ukraine disrupted steel markets, the company will experience a gradual flow of relatively high-cost raw materials through inventory in the fourth quarter. Ternium anticipates this dynamic to mostly reverse during the first quarter of 2022.