ADVFN - Advanced Financial Network.
HOME» NYSE » T » TX Stock Price » TX Stock News

Ternium . Share News

 Ternium S A Stock Price
TX Stock Price
 Ternium S A Stock Chart
TX Stock Chart
 Ternium S A Stock News
TX Stock News
 Ternium S A Company Information
TX Company Information
 Ternium S A Stock Trades
TX Stock Trades

Gas Prices May Threaten Ternium's Brazil Steel Slabs Project -Sources

RIO DE JANEIRO -(Dow Jones)- Latin American steelmaker Ternium SA (TX)'s steelworks project at Brazil's Acu port may be threatened by natural gas prices, which are significantly higher in Brazil than in other Latin American nations. Ternium, which plans to use the natural-gas-based direct reduction process for its Acu steelworks, is being asked to pay $12 a million British thermal units of natural gas by Brazil's state-controlled oil and gas producer Petroleo Brasileiro SA (PETR4.BR, PBR)--nearly six times more than the price of gas in some other countries--according to people close to the project. Natural gas at this price level would make the steel slabs plant unviable, the people said. Petrobras bases its natural gas prices on the average price of a basket of oils in a previous six-month period, meaning the prices don't quickly reflect changes in gas prices on international markets, which are now falling. Gas prices have slumped 24% from the fourth quarter of 2011 and may eventually benefit Ternium's Acu project, despite the time lag in local pricing mechanisms, Barclays Capital said Tuesday in a report. According to Barclays, Ternium currently pays about $4.5 per MMBtu of natural gas for its steelmaking operations in Argentina, while people familiar with the market put prices in Mexico, where Ternium also has a direct-reduction based steelmaking plant, at around $2 per MMBtu. "Ternium's in no rush, (we) would expect they'd like to try and get Petrobras to be more realistic," said London-based UBS analyst Rene Kleyweg, referring to the prospects of the Acu steel plant's getting the go-ahead. Petrobras had no immediate response to e-mailed questions on the price of gas supplies to Ternium when approached by Dow Jones Newswires Tuesday. Ternium declined to comment. According to a spokeswoman for Rio de Janeiro state's economic development secretariat, Ternium is expected to gain a construction license for the Acu plant from the state's environmental authority in coming days. The project may also involve construction of a pelletizing plant to process iron ore from Anglo American (AAL.LN)'s Minas-Rio project to use in the steelmaking process, according to the secretariat. This isn't the first time that natural gas prices have posed problems to Brazilian steel projects. A steel slabs project being developed by miner Vale SA (VALE, VALE5.BR) and South Korean steelmakers Dongkuk Steel Mill Co. (001230.SE) and Posco (005490.SE) in Ceara state, northeast Brazil, was originally designed to use natural gas but the technology was changed after failure to reach agreement with Petrobras over the price of gas supplies. The Ceara steel project, now named Companhia Siderurgica do Pecem, was originally planned for a 2010 start-up but according to specialist publication Steel Business Briefing may not start up until 2016, even later than Vale's recent projection of a first-half 2015 start-up. The plant is expected to produce 3 million metric tons a year of slabs, partly for export to South Korea, in a $4.69 billion investment. -By Diana Kinch, Dow Jones Newswires. Tel 55 21 2586 6086 -0-

Stock News for Ternium . (TX)
11/15/201308:55:37Highbridge Capital Management 3Q 13F: Largest Eliminations
11/15/201308:55:35Highbridge Capital Management 3Q 13F: Largest Purchases
11/15/201308:55:35Highbridge Capital Management 3Q 13F: Largest Sales
11/15/201308:55:35Highbridge Capital Management 3Q 13F: Largest -2-
08/01/201318:01:27Tenaris 2nd-Quarter Profit Down 5.6% as Tube Sales Fall in North...
03/19/201314:50:05Final Offers for Thyssen Unit Well Below Book Value
01/29/201310:07:08Brazil BNDES Could Offer BRL4 Billion for CSN's ThyssenKrupp...
11/30/201219:40:48Brazil Steelmaker CSN Offers About $3 Billion for Two ThyssenKrupp...
10/10/201212:40:04Bidders Eye ThyssenKrupp's Steel Americas Unit
09/27/201209:58:56Refinery Status: Irving's Saint John Refinery Resumes Normal...
09/26/201219:44:23Argentine Stocks Slide as Concern About Spain Returns
09/26/201209:15:47Refinery Status: Phillips 66 Reports Planned Work at Illinois...
09/25/201208:58:11Refinery Status: Coker Unit Snag Reported at Exxon Joliet
09/21/201216:51:17Refinery Status: Valero Shuts Houston Refinery -2-
09/21/201216:51:16Refinery Status: Valero Shuts Houston Refinery FCCU For Planned...
09/20/201216:38:31Refinery Status: Some Units Restarted At Phillips 66 Los Angeles...
09/18/201215:35:37Refinery Status:Benzene Leak Detected At -2-
09/18/201215:35:36Refinery Status:Benzene Leak Detected At Chevron's Pascagoula...
09/17/201213:17:05Refinery Status: Coker Unit In Maintenance At HollyFrontier El...
09/14/201211:41:08Refinery Status: Unit Shut At Total Refinery In Port Arthur...

Ternium . and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations