Altos Hornos de México (Ahmsa) expects steel prices to improve in 2020 as the federal government invests in projects designed to revive the economy and spur growth in parts of the country.
Ahmsa, Mexico’s biggest steelmaker, forecasts market prices rising to $620-700/t from $500/t recorded in October, Jorge Ancira Elizondo, chief administrative officer at Ahmsa told media.
He added that the new projects, such as construction of Santa Lucía airport, the Dos Bocas oil refinery at the Gulf coast and the Maya Train in the south of the country, which will have an extension of 1525 kilometers, will generate higher demand for steel products.
Ancira Elizondo also said the Artemisa project, which will allow the company to maximize its iron ore reserves, should conclude by the end May 2020, while Conchas Sur, which will permit the company to secure its own supply of metallurgical coal in the long term, will be ready in the first half next year.
Ahmsa produced 4.52mn tonnes of crude steel in 2018.