- An unexpected surge in steel prices is benefiting steelmakers, and pricing realization lags should support strong revenue and margins for most of the year at Ternium.
- Futures indicate $1,000-plus pricing for U.S. hot-rolled coil through November, but increased output and some demand destruction remain threats in the second half.
- Ternium management sounds as though they want to continue investing for growth, and future capacity additions could be announced before the end of 2021.
- Ternium shares still have near-term upside to the mid-$40s, but it's tough to see the steel market getting substantially stronger than it already is.
For further details see:
Ternium Seeing End-Market Recoveries And Reaping The Benefits Of Higher Steel Prices