Steel Mills
Dismal Quarter for Mexican Steelmaker AHMSA
Written by Sandy Williams
October 29, 2019
Mexican steel maker Altos Hornos de México, S.A.B. de C.V. (AHMSA) earnings in the third quarter of 2019 declined across the board due to unfavorable steel market conditions.
AHMSA EBITDA plummeted 149.6 percent from 3Q 2018 for a loss of $40.4 million. EBITDA in the steel segment plunged 132.1 percent for a loss of $31 million compared to positive EBITDA of $96.6 million a year ago.
Net sales fell 34 percent driven by lower prices and weaker demand for core products. Shipments slid 16.9 percent to 733,000 metric tons year-over-year. Cost of sales decreased by 19 percent due to lower production volumes.
In an effort to reduce expenses, the company imposed strict cost control measures during the quarter, including selling properties, aircraft, vehicles and other assets not required for AHMSA operations.
“AHMSA is exploring various capitalization options and/or associations with a variety of industrial and financial groups; there is, however, no agreement at this time,” wrote AHMSA in a press release.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USW seeks clarity on plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).