[Zenith Steel's Latest Construction Steel Ex-Factory Prices for Mid-May]

[SMM Steel] Ukraine's finished steel products fell 15.8% m/m to 460,800 tonnes in April 2026. Steel output fell 25.3% m/m to 517,300 tonnes. Pig iron fell 16.1% m/m to 554,000 tonnes. Jan-Apr steel -7.4% y/y to 2.25 million tonnes, pig iron -0.3% to 2.36 million tonnes, rolled -9.1% to 1.8 million tonnes. April's decline was partly due to an unscheduled shutdown at Zaporizhstal. High electricity/gas prices and CBAM remain pressing issues. In 2025, commercial rolled steel rose 4.8% y/y to 6.52 million tonnes, pig iron +11.2% to 7.88 million tonnes, steel -2.2% to 7.41 million tonnes. GMK Center's Dec forecast: steel output of 7.2 million tonnes in 2026 (base case) or 6.3-6.6 million tonnes in a pessimistic scenario.

[SMM Steel] Ternium reported Mexican steel shipments rose 4% y/y to 2 million tonnes in Q1 2026. Q2 shipments are expected to continue improving driven by commercial markets. Several infrastructure projects will drive demand. Higher steel prices partly offset lower shipments. Mexico has strengthened tariff/trade enforcement to mitigate US tariffs and resist low-priced Asian imports. The govt signed a deal with Mexican steelmakers including Ternium to purchase 200,000 tonnes of steel for infrastructure. Ternium expects its Pesqueria cold mill/galvanizing line to near full capacity by October. Slab facilities are progressing as expected.

Ukrainian mining and steel group Metinvest reported its Q1 2026 operational results, showing pig iron production rose 18% year-on-year to 476,000 metric tons (mt). However, crude steel production saw a marginal decline of 1% to 494,000 mt. Notably, iron ore concentrate production surged by 91% year-on-year to 4.86 million mt as the company maximized utilization of its mining assets for export. The disparity between rising pig iron and stagnant steel output reflects a strategic focus on exporting semi-finished products and raw materials to the EU market. This increased availability of Ukrainian iron ore and merchant pig iron provides a crucial supply buffer for European electric arc furnace operators amidst global scrap shortages.