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.

ahmsa logo

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

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

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