Mexican steelmaker Altos Hornos de Mexico (Ahmsa) expects steel domestic demand and exports to improve in H2, amid a recovery in international steel prices.
The company net sales dropped by 46pc to MXN6.9bn ($312.5mn) in Q2 2020, down from MXN12.9bn in Q2 2019, it said in its Q2 2020 earnings reported by Mexico’s stock exchange (BMV). However, it did not disclose its crude steel production volume nor sales volume.
Ahmsa reported a net loss of MXN4.2bn in the Q2 2020, up two-fold from a net loss of MXN2.1bn in Q2 2019. The company posted an Ebitda loss of $53mn in both Q2 2020 and Q2 2019.
The steelmaker did not disclose information about its partnership with the Mexican long steel producer Villacero. On June 18, Ahmsa announced a partnership with Villacero, in a bid to resolve the former’s financial challenges. Under the partnership, Villacero will pay $300mn towards Ahmsa’s working capital initially to improve the steelmaker’s balance sheet.
Ahmsa is working at 60pc of its capacity as the demand for steel products improves gradually in the country. The company was at 70pc production capacity before the COVID-19 pandemic outbreak
($ = 22.08MXN)