AHMSA's Bankruptcy Leaves Mexico's Steel Sector in Limbo

The bankruptcy of Mexican steel producer AHMSA remains unresolved after a year, delaying the sale of assets worth $1.32 billion and destabilizing steel supplies to Mexico. The closure sent steel prices up by as much as 18 percent and forced domestic buyers to rely heavily on imports from the United States, China and Brazil. Investors remain cautious due to the necessary modernization costs and new U.

S. tariff risks, while more than 15,000 jobs and 1,700 creditors depend on a quick solution.

Investor caution slows down asset sales

According to the El Financiero report, although the trustee overseeing the bankruptcy said the sale process was ongoing, several obstacles had delayed progress. Market conditions, investors' perception of risk, and significant capital requirements combined to slow down negotiations.

The report notes that the rebirth of AHMSA will require extensive modernization of energy systems and compliance with environmental regulations, investments that many buyers evaluate with caution. Equipment such as a normalized mill, a plug mill, and an electric furnace have attracted interest from buyers including Ternium, DeAcero, and Villacero, but no definitive agreements have been concluded.

On the other hand, trustee Victor Manuel Aguilera Gomez warned that the recent tariffs imposed by the United States under Donald Trump could scare off potential buyers. These tariff uncertainties add an additional layer of complexity to the sale, potentially delaying