Máximo Vedoya, CEO of Ternium, who was recently recognized as Steelmaker of the Year, participated in the Steel Market Update (SMU) Summit, the most important forum in North America on steel industry trends, that took place in Atlanta, Georgia.
The Steel Market Update Summit is the leading forum in North America for steel industry trends. From August 25 to 27, it brought together the main actors of the steel industry in the region to discuss topics such as new generations of steel and raw materials, market and price volatility, new technologies applied to steelmaking, the effects of decarbonization on trade policies, and the industry’s production chain.
In an interview with David Schollaert, Deputy Editor-in-Chief of SMU, Vedoya debunked several myths that have emerged in the current context, including:
1. “The tariff policy promoted by the United States is enough to stop China’s unfair trade.”
The advance of systematic unfair trade from China, which is flooding markets with its products across many industries, is a reality. “The imbalance with China is destroying all manufacturing, not just the steel industry,” said Vedoya. To counter this situation, he emphasized that the solution is not isolation, but working together to create a strong and competitive platform in North America. On this point, he highlighted that a renewed USMCA under this premise would be the rational path forward.
2. “Chinese automaker BYD is building a large plant in Mexico.”
He commented that although this news has been circulated, there is no information confirming that such a plant is being built in the country.
3. "Mexican steel is gaining a growing share of the U.S. market."
On this topic, he pointed out that the United States represents 15% of Mexico’s steel consumption, while Mexico accounts for just 2% of steel consumption in the United States. “This shows that Mexico is a free-market economy and that the country provides space for healthy competition with U.S. companies,” he added.
4. “China is triangulating products through Mexico to the United States.”
On the contrary, he emphasized that Mexico is doing a great job defending against unfair trade from China and its satellite countries, with more measures in place than the United States. Additionally, the Mexican government is promoting internal economic development through the "Plan México", aimed at generating greater added value.
5. “The United States and Mexico have different visions for the region.”
On this topic, Vedoya countered by saying that the "Plan México" and the value chain development that is being promoted by President Sheinbaum’s administration is very much aligned with the industrial development being driven by President Trump in the United States, and that together as a region, they could even substitute imports that currently amount to an estimated $175 billion in steel and derivative products.
Investment in Pesquería continues to progress
Vedoya also spoke about the progress of the $4 billion investment in the Ternium Industrial Center in Pesquería, Nuevo León, and shared updates on the construction of the new steel mill—which is shaping up to be the most modern and sustainable in the Americas—, where more than 8,000 people are working.
This investment, he emphasized, is key to Ternium’s vision of creating a strong industrial system that allows for an improved product portfolio for the sectors it currently serves.