What a difference one deal can make. The management of Ternium (NYSE:TX) had been considered one of the best in the Latin American steel sector, and the company was generally well thought of with its mix of cost integration in Mexico and near-monopoly in Argentina. Recently, though, the company paid a huge premium to take a major position in a Brazilian steel company and analysts have put the company in the penalty box as a result.
Familiar Conditions in Core Markets
The global slowdown in the steel market has not been helping Ternium sentiment lately. As Mexico's economy is so tied to the U.S., conditions in the U.S. seem to inevitably spill over into Mexico and this has been true for the steel market as well. Argentina, too, has seen some sequential slowing in shipments and pricing - a trend repeated broadly through the world.
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