Economy
AHMSA Selling Raw Materials to Pay Workers, Local Report Says
Written by Michael Cowden
May 25, 2023
Altos Hornos de México (AHMSA) has sold approximately 19,000 tons of scrap to help pay for workers’ salaries, according to a local media report.
The Mexican steelmaker is also raising money by selling coke from its coke plants, Mexico’s El Tiempo reported, citing comments from bankruptcy trustee Elmer Rocha.
AHMSA and hedge fund Argentem Creek Partners did not respond to requests for comment for this article.
Recall that AHMSA unexpectedly stopped production in December 2022 and declared bankruptcy in January. Argentem Creek, which was unveiled as a shareholder in the company in April, was expected to provide $200 million to the steelmaker this month.
Mexican President Andrés Manuel López Obrador said in mid-May that talks about restructuring AHMSA’s debts were still ongoing.
AHMSA was forecast to resume production in Q3 and to ramp up production in Q4 and into early 2024. But sales of raw materials could throw that timeline into question.
The company makes both sheet and plate and is an important supplier to customers in both the US and Mexico. The unexpected production outage there late last year contributed to a price spike earlier this year in the States.
By Michael Cowden, michael@steelmarketupdate.com
Michael Cowden
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