Ternium does not expect that the iron ore supply disruptions in Brazil will have any early effects on output from its slab-producing unit in the country, chief executive officer M??ximo Vedoya said during a conference call to discuss results for 2018.
The local branch of the Latin American group, called Ternium Brasil, is supplied with some 7.3 million tonnes per year of iron ore from Vale, he added. That volume includes 2.5-3.0 million tpy of pellets.The miner is currently complying with its supply contracts, Vedoya said."Our Brazilian facility has an exclusive contract with Vale and it is continuing to deliver under this contract. There is no significant problem," he said. "Of course, [iron ore] prices are up, and this will increase costs, but there is also an increase in slab prices that we expect to see soon."After a tailings dam at Vale's C??rrego do Feij??o mine failed and flooded the vicinity on January 25, the mining company decided to decommission all its similar dams across the country, which...