Steel production raw materials include lump ore, sinter feed, and pellet feed, categorized by particle size. Lump iron ore is used directly, while sinter feed and pellet feed undergo processing before use in blast furnaces or direct reduced iron (DRI) processes. In Mexico, Las Encinas and Peña Colorada supply most pellets to Ternium Mexico's steelmaking facilities and also provide non-pelletizable iron ore fines to other steel manufacturers. In Brazil, Mineração Usiminas supplies lumps and concentrates to Usiminas' steel manufacturing operations and primarily concentrates to other steel producers. As of December 31, 2025, Usiminas had an iron ore production capacity of 9.0 million tons for lumps, sinter feed, and pellet feed, while pellet production capacity in Mexico was 4.0 million tons. Ternium's total production capacity for steel slabs and billets was approximately 15.4 million tons, with finished steel product capacity at about 22.3 million tons as of the same date.
Ternium S A's Comment on Supply Chain
Steel production raw materials include lump ore, sinter feed, and pellet feed, categorized by particle size. Lump iron ore is used directly, while sinter feed and pellet feed undergo processing before use in blast furnaces or direct reduced iron (DRI) processes. In Mexico, Las Encinas and Peña Colorada supply most pellets to Ternium Mexico's steelmaking facilities and also provide non-pelletizable iron ore fines to other steel manufacturers. In Brazil, Mineração Usiminas supplies lumps and concentrates to Usiminas' steel manufacturing operations and primarily concentrates to other steel producers. As of December 31, 2025, Usiminas had an iron ore production capacity of 9.0 million tons for lumps, sinter feed, and pellet feed, while pellet production capacity in Mexico was 4.0 million tons. Ternium's total production capacity for steel slabs and billets was approximately 15.4 million tons, with finished steel product capacity at about 22.3 million tons as of the same date.
Sources:
Ternium S a 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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