Latin American steel producer Ternium is preparing to initiate additional anti-dumping petitions in Mexico to curb low-cost steel imports—primarily from Asia—Chief Executive Máximo Vedoya confirmed to Reuters. The move comes as cross-border steel trade disputes become a focal point ahead of the USMCA trilateral trade review between the US, Mexico, and Canada.
📌 Trade Friction & Anti-Dumping Strategy:
• Targeting Asian Supply: Ternium stated it is “very likely” to file new trade remedy cases in Mexico, continuing its role as lead petitioner against unfairly priced Asian steel shipments.
• USMCA Priorities: Vedoya emphasized that North America’s primary focus should be tightening regional rules of origin and easing the burden of US Section 232 steel and aluminum tariffs on cross-border intra-bloc trade.
• De-Risked US Exposure: Ternium has sharply reduced direct steel exports from Mexico to the US, insulating its balance sheet from US tariffs while redirecting output to displace imported flat steel within Mexico.
📌 Pesquería Slab Mill Expansion & Margin Upside:
• February 2027 Commissioning: Construction is advancing on its major slab facility in Pesquería (near Monterrey), with operations scheduled to start in February 2027.
• +$50 to +$100/Ton Margin Expansion: Transitioning from imported third-party slab to internally produced Pesquería supply is projected to add $50 to $100 per ton in margin, with full financial benefits visible by 2028 following product certifications.
📌 Operational Focus on Brazil’s Usiminas:
• Controlling Stake Consolidated: Ternium and consortium partners raised their controlling stake in Brazilian steelmaker Usiminas (B3: USIM3) to just under 93% earlier this year.
• Productivity First: Management dismissed near-term full buyout speculation, maintaining that internal operational turnaround and productivity gains remain the sole focus for the Brazilian asset heading into 2027.
💡 Market Takeaway: Nearshoring industrial supply chains requires aggressive domestic trade enforcement. By substituting Asian imported slab with local Pesquería capacity and tightening USMCA content rules, Ternium is building a high-margin regional fortress in North American steel.