Título de la presentación en TradeGothic 30 pto ... · 19902000 2010 Brasil Mexico 2019e 2.7 3.9 1.1 3.5 2000 2010 Argentina Colombia 2019e Apparent steel use (million tons) Source:

Ternium I July 20201As of July 2, 2020

Investor PresentationJuly 2020

Ternium I July 20202

Forward-Looking Statements

This presentation contains certain forward-looking statements and information relating to Ternium S.A. and itssubsidiaries (collectively, “Ternium”) that are based on the current beliefs of its management as well as assumptionsmade by and information currently available to Ternium. Such statements reflect the current views of Ternium withrespect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause theactual results, performance or achievements of Ternium to be materially different from any future results, performance orachievements that may be expressed or implied by such forward-looking statements, including, among others, changes ingeneral economic, political conditions in the countries in which Ternium does business or other countries which have animpact on Ternium’s business activities and investments, changes in interest rates, changes in inflation rates, changes inexchange rates, the degree of growth and the number of consumers in the markets in which Ternium operates and sellsits products, changes in steel demand and prices, changes in raw material and energy prices or difficulties in acquiringraw materials or energy supply cut-offs, changes in business strategy and various other factors. Should one or more ofthese risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may varymaterially from those described herein as anticipated, believed, estimated, expected or targeted. Ternium does notintend, and does not assume any obligation, to update these forward-looking statements.


Profile and Performance


Ternium’s ProfileA leading steel company in Latin America

Net sales of $10.2 billion in 2019

Steel shipments in 2019 of 12.5 million tons

Industrial facilities in Mexico, Argentina, Brazil, Colombia, USA and Central America

1Usiminas: a leading company in the Brazilian flat steel market

Vertically integrated, from iron ore mines to service centers

Focus on high value-added products

Participation in Usiminas1 control group

Integrated Facilities

Countries Employees

Downstream Facilities

Distribution Centers

Service Centers

Integrated Facilities

Mexico; 50%

Brasil

USA

Southern Region; 15%

Steel Shipments 2019

ColombiaOther

Other Markets,34%

Slabs

20

22

20,000


Sustainable ProfitabilityA comprehensive management approach

Proactive approach to environment, health and safety (EHS) management

Focus on differentiation through sophisticated products and services

Deep ties with our communities

Commitment to integrity

Recruitment, training and retention of talent

Quest for excellence in industrial management and technology

Fostering of steel value chain

Economic Value Generated and Distributed (2019)

Economic value

generated $10.3 B

Suppliers

$7.7 B

Employees $827 M

Capex

$1.1 B

Taxes

$357 M

Capital providers

$352 M

Research & development

$10 M

Community investments

$6.6 M


Sustainable ProfitabilityStrong commitment to the environment, health and safety

Standardized Environment Health & Safety (EHS) management systems

Extensive training and management performance accountability on EHS

Certification of EHS systems

Health and safety OHSAS 18001

Environment ISO 14001

Energy saving ISO 50001

Investment in best available technologies to reduce environmental footprint and safety risk

1.1 1.00.7 0.7 0.8

2015 2016 2017 2018 2019

Lost time injury frequency rate (# of events / million hours worked)


Sustainable ProfitabilityCommitment to integrity through strong corporate governance

Audit committee (three independent directors)

Internal Audit Department reporting to the Chairman and the Audit Committee

Business Conduct Compliance Officer reporting to the CEO

Compliance department that oversees SOX certifications and related party transactions

Employee accountability and training to ensure a transparent behavior

Confidential channels to report non-compliant behavior

Codes Policies Procedures

Conduct for all Transparency Relevant

employees Business conduct information

Ethics for senior Antifraud Related party

financial officers Securities trading transactions

Conduct for Human rights

suppliers Personal Data Protection


Supporting 1,800 SMEs (customers and suppliers) through:

Training programs

Industrial projects and business consultancy

Institutional assistance

Commercial support and financial aid

Playing an active role at:

Universities

Business schools

Government agencies

Industrial associations

“ProPymes has helped create an industrial networkthat encourages the professionalization and quest forexcellence of SMEs.”

Sustainable ProfitabilityFostering the steel industry value chain in Mexico and Argentina


Sustainable ProfitabilityDeep ties with our communities

Working together with local institutions to enhance the education and welfare of our communities

Scholarships, internships, teachers’ training, infrastructure funding, volunteering programs

Health prevention campaigns, infrastructure funding, sports sponsoring

Integration (social and arts events) New technical school in Pesquería

Volunteer programs for school repairHeritage Photo Archive


Sustainable ProfitabilitySound capital structure

Dividends Payments ($ per ADS)

Net Debt ($ billion)

1.10.9

2.7

1.71.5

dic-15 dic-16 dic-17 dic-18 dic-19

1.1x 0.6x 1.4x 0.6x 1.0x1

0.90 0.901.00

1.101.20

2015 2016 2017 2018 20191 Net Debt/EBITDA Ratio (last 12 months EBITDA)

Financial strength to take advantage of investment opportunities and withstand unexpected events

Comfortable net debt to EBITDA ratio1 along Ternium’s history

Net debt of $1.3 billion as of March 31, 2020 with EBTIDA ratio of 0.9x

Net debt to EBITDA ratio in a range of 0.6x to 1.4x in the last five years

Cash position of $1.0 billion as of March 31, 2020


COVID-19 Mitigation Measures


COVID-19 Mitigation MeasuresHealth and safety measures to adapt to the new scenario

Work-from-home policy wherever possible

New protocols for on-site work that comply with, or exceed, local authorities’ directives

strict social distancing and mandatory face masks

temperature checks at admission posts

strengthened disinfection routines including buses, working posts and cafeterias

Employees with higher risk of developing serious complications stay at home

Monitoring of employees under quarantine and contagion tracking

Extensive communication programs on safety recommendations to prevent contagion


COVID-19 Mitigation MeasuresStrengthened community support programs

Reinforcing the infrastructure of key hospitals within our communities with the donation of medical equipment to health care units

ventilators

intensive care equipment

safety kits for health professionals

Construction and operation of a field hospital in Monterrey, Mexico

100 beds

intensive care unit with 10 fully equipped places.

Roberto Rocca Technical School (RRTS)

Online education: provision of laptops and cell phones for those students with no way of connecting from home

Donation of 3D printed masks made by RRTS teachers

Reorganization of Ternium’s AfterSchool program to ensure continuity using online learning tools


Cost reduction

Production and overhead costs rightsizing

Leverage on operational flexibility to reduce run rates with lowest possible impact on production cost

Reduction of general expenses and extraordinary maintenance works

Working capital

Fast reduction of purchases of raw materials, third-party steel, spare parts and other materials

Working with supply chain to optimize procurement activities

Withdrawal of dividend proposal for fiscal-year 2019

Cash position raised to $1 billion (end of Mar’20)

COVID-19 Mitigation MeasuresQuick deployment of actions to preserve Ternium’s robust financial profile

435 409520

1,052

600

2016 2017 2018 2019 2020f

Capital Expenditures ($ million)

Capex in 2020 to decrease by $250 million (from original plan of $850 million):

Delayed completion of new hot rolling mill in Mexico to Apr’21 (from Oct’20)

Delayed start-up of new 520,000-ton rebar facility in Colombia to 2H20 (from Mar’20)


COVID-19 Mitigation MeasuresAdjusting operations on a country-by-country basis

Main production lines operating with lower run rates due to decreased steel demand

Automotive gradually re-opening Other industries operating at

reduced rates Construction activity resuming, at

weak levels

Mandatory lockdown being gradually relaxed in the country, with the exception of Buenos Aires city and its outskirts

Blast furnace gradually improving production rate from technical minimum

Finishing lines gradually increasing utilization after minimum shipments in Apr’20

Slab facility in Rio de Janeiro recovering from technical minimum production rate

Decreasing slab sales in Brazil due to low finished steel demand

Higher slab exports to third parties to offset decreased slab sales in the Brazilian market in 2Q20

Each country in which Ternium operates has adopted unique measures in response to the pandemic

Industrial facilities’ run rates gradually improving from lowest levels in Apr/May 2020


Latin American Steel Markets


Our Main Steel Markets The Mexican steel market became the largest in Latin America

9.7

20.6

6.6

24.2

1990 2000 2010

BrasilMexico

2019e

2.7

3.9

1.1

3.5

1990 2000 2010

ArgentinaColombia

2019e

Apparent steel use (million tons)

Source: Alacero October 2019

Growth in Mexico’s steel consumption was driven mainly by a dynamic manufacturing industry

Mexico, Brazil, Argentina and Colombia accounted for approximately 81% of Latin America’s steel consumption in 2019


MexicoAttractive steel market with a significant demand for high-end steel products

Commercial, 47%

Automotive, 26%

Other industries, 10%

Home appliances, 9%

HVAC / lighting, 8%

Steel shipments by industry (2019)

Access to the North American steel market through USMCA

Developed industrial sector (approximately 53% of Ternium’s total shipments in 2019)

Focus on value added products and services:

Service center network

Nationwide coverage through distribution centers and regional distributors

Customer digital connectivity

Ongoing investment plan to increase our capabilities for industrial customers


MexicoNew hot-rolling mill in Pesquería expected to start up in April 2021

Source: Canacero / Ternium estimates

36%

Apparent flat steel use – Mexico 2019 Significant technological upgrade to expand TX’s product range and improve customer service

The new mill will further increase Ternium’scapabilities to substitute imports, which in 2019 accounted for 48% of Mexico’s flat steel use

Targeting the automotive industry, as well as the home appliance, machinery, energy and construction sectors

Annual production capacity of 4.4 million tons (option to increase capacity to 4.8 million tons)

65%

35%

Industrial Commercial

46%54%

Local Imports


ArgentinaThird largest steel market in Latin America with a developed industrial sector

Source: Ternium estimates

Significant industrial customer base representing approximately 47% of Ternium’s total steel shipments (2019 estimate)

Focus on value added products and services:

Service center network

Short notice delivery and just-in-time agreements

Customer digital connectivity

Joint product research and development projects with our value chain (mainly home appliance, transportation and renewable energy)

Commercial, 53% Automotive, 9%

Agribusiness, 6%

Home appliance, 5%

Cans, 6%

Oil & gas, 5%

Other industrial, 16%

Steel shipments by industry (2019)


Ternium’s Performance


Ternium’s PerformanceEBITDA and Net Income

470405 388

263302

1Q19 2Q19 3Q19 4Q19 1Q20

EBITDA ($ million)

17%15% 16%

12% 13%

1Q19 2Q19 3Q19 4Q19 1Q20

EBITDA Margin (% of net sales)

147121 127

90 101

1Q19 2Q19 3Q19 4Q19 1Q20

EBITDA per Ton1 ($)

1 Consolidated EBITDA divided by steel shipments. 2 Adjusted to exclude non-cash deferred tax loss of $189.1 million ($0.96 per ADS) as a result of a 20% depreciation of the Mexican peso in the 1Q20.

225 203

112 90

(19)

1.11 0.92

0.49 0.36

-0.50 - 0.50 1.00 1.50 2.00 2.50 3.00

-65 -15 35 85

135 185 235 285

1Q19 2Q19 3Q19 4Q19 1Q20

Net Income and Earnings per ADSNet Income (Loss) ($ million)Earnings (Losses) per ADS

1702

0.90


Mexico

1,563 1,569 1,629 1,544 1,650

1Q19 2Q19 3Q19 4Q19 1Q20

442508 504 484

380

1Q19 2Q19 3Q19 4Q19 1Q20

Southern Region

Ternium’s PerformanceSteel Shipments

880 950643 578 636

1,199 1,256

924 889 969

1Q19 2Q19 3Q19 4Q19 1Q20

Slabs

Other Markets

9%

7%

-22%

Mexico; 55%

Brasil

USA

Southern Region; 13%

Steel Shipments 1Q20

Colombia

Other

Other Markets,32%


Ternium’s PerformanceNet Sales and Revenue per Ton

830 802 774 751 737

912 872

820 776 769

600

700

800

900

1,000

1,100

1Q19 2Q19 3Q19 4Q19 1Q20

Revenue per Ton ($/ton)

-1%

-2%

2,736 2,7572,450 2,250 2,271

1Q19 2Q19 3Q19 4Q19 1Q20

Net Sales ($ million)

3,205 3,3333,057 2,917 2,998

1Q19 2Q19 3Q19 4Q19 1Q20

3%

Total Shipments (thousand tons)

Mexico

Consolidated

1%

Steel prices in Mexico

Weaker industrial contract realized prices mostly offset by sequentially higher steel prices in the spot market in the 1Q20

Downturn in spot steel prices since the end of March 2020.

Revenue per ton in Mexico to decrease sequentially in 2Q20.


Ternium’s PerformanceFree Cash Flow and Net Financial Debt

210

279256

307258

1Q19 2Q19 3Q19 4Q19 1Q20

Capital Expenditures ($ million)

266

(6)

250

85

185

1Q19 2Q19 3Q19 4Q19 1Q20

Free Cash Flow ($ million)

1.51.7

1.5 1.51.3

mar-19 jun-19 sep-19 dec-19 mar-20

0.9x1

Net Debt ($ billion)

0.6x 0.8x 0.9x

1 Net Debt/EBITDA Ratio (last 12 months EBITDA)

1.0x

475

273

506

393443

1Q19 2Q19 3Q19 4Q19 1Q20

Cash from Operations ($ million)


Conclusion


Conclusion

A leading steel company in Latin America with a comprehensive management approach

Solid financial position

Resilience, commitment and flexibility to face the COVID-19 outbreak

Successful implementation of business strategy geared toward sustainable profitable growth

TX Brasil integration and the new hot rolling mil in Pesquería provide opportunity to strengthen business in the region

Continued focus on generating long-term stakeholder value



Appendix

Corporate Structure

Production Capacity

Shipments and Net Sales

Income Statement

Cash Flow Statement

Balance Sheet

Selected Webcast Presentation Slide First Quarter 2020

Ternium’s Debt Profile

More about Ternium’s developing industrial system in Brasil, Mexico and Colombia


Economic participation

1 Participation based on ordinary shares distributed2 Participation based on total shares distributed3 Net of non-controlling interest in TX Argentina4 Formerly known as Siderar5 Formerly known as CSA

Non-consolidated companies

Techint Group: 62%Tenaris: 11%Ternium (treasury shares): 2%Public: 24%

Exiros

Ternium Colombia

Ternium México

Usiminas

Ternium Argentina4

CEU: 5%1

Nippon Steel & Sumitomo Metal: 32%1

TenarisConfab: 5%1

Other (ordinary shares): 23%1

38%29%

71%

62%

50%

100%

6%1

Other

28%1

Tenaris50%

Subsidiaries

Peña Colorada

50%

Las Encinas

100%

Ternium Int. Guatemala

Ternium USA

100%

100%

Joint operations

ArcelorMittal

50%

Tenigal51% Nippon Steel &Sumitomo Metal

49%

Techgen48%22%

Tecpetrol30%

Ternium Brasil5100%Direct Indirect3 Total

Ternium Mexico 71% 18% 89%

Ternium Argentina4 62% 62%

Ternium Brasil5 100% 100%

Usiminas2 17% 4% 20%

Tenigal 51% 51%

Ternium Colombia 100% 100%

TX Int. Guatemala 100% 100%

TX USA 100% 100%

Las Encinas 71% 18% 89%

Peña Colorada 36% 9% 44%

Corporate Structure


Production Capacity

(1) Brazil, Southern US, Colombia and Central America

(2)

(2) Corresponds to Ternium Brasil

Production Capacity as of year-end 2019 (million metric tons per year)

Mexico Argentina Other (1) Total

Slabs 2.5 3.2 5.0 10.7

Billets 1.6 0.2 1.9

Crude steel 4.1 3.2 5.2 12.5

Hot rolled coils 6.5 2.9 9.4

Rebars & wire rods 1.2 0.2 1.4

Cold rolled coils 3.7 1.8 5.5

Tinplated products 0.2 0.2

Galvanized products 2.4 0.6 0.4 3.4

Pre-painted products 0.8 0.1 0.2 1.1

Service center 3.9 2.3 1.3 7.5


Shipments and Net Sales

1Q 2020 1Q 2019 Dif. 1Q 2020 1Q 2019 Dif. 3Q 1Q 2020 1Q 2019 Dif.

Mexico 1,268.9 1,425.8 -11% 1,649.5 1,563.4 6% 769 912 -16%Southern Region 340.8 384.5 -11% 379.6 442.3 -14% 898 869 3%Other Markets 600.2 850.7 -29% 968.9 1,198.8 -19% 619 710 -13%Total steel products 2,209.9 2,661.1 -17% 2,998.0 3,204.5 -6% 737 830 -11%

Other products1 44.2 74.7 -41%Total steel segment 2,254.1 2,735.8 -18%

Total mining segment 94.3 75.8 24% 993.2 919.9 8% 95 82 15%

Total steel and mining segments 2,348.4 2,811.6 -16%Intersegment eliminations (77.0) (75.8) 2%

Total net sales 2,271.4 2,735.8 -17%

1Q 2020 4Q 2019 Dif. 1Q 2020 4Q 2019 Dif. 3Q 1Q 2020 4Q 2019 Dif.

Mexico 1,268.9 1,197.3 6% 1,649.5 1,543.7 7% 769 776 -1%Southern Region 340.8 444.0 -23% 379.6 484.4 -22% 898 917 -2%Other Markets 600.2 550.2 9% 968.9 889.2 9% 619 619 0%Total steel products 2,209.9 2,191.5 1% 2,998.0 2,917.3 3% 737 751 -2% Other products1 44.2 51.9 -15%Total steel segment 2,254.1 2,243.4 0%

Total mining segment 94.3 99.7 -5% 993.2 916.6 8% 95 109 -13%

Total steel and mining segments 2,348.4 2,343.1 0%Intersegment eliminations (77.0) (93.1) -17%

Total net sales 2,271.4 2,250.0 1%1 The item “Other products” primarily includes Ternium Brasil’s and Ternium México’s electricity sales.

Net Sales (USD million) Shipments (thousand tons) Revenue / ton (USD / ton)

Net Sales (USD million) Shipments (thousand tons) Revenue / ton (USD / ton)


Income Statement

USD million 1Q 2020 1Q 20190

Net sales 2,271.4 2,735.8 Cost of sales (1,920.5) (2,215.0)

Gross profit 350.9 520.8

Selling, general and administrative expenses (211.6) (219.0)

Other operating (expenses) income, net (3.6) 5.6

Operating income 135.7 307.3

Finance expense (16.3) (19.8)

Finance income 7.9 5.9

Other financial income (expenses), net 114.5 (13.1)

Equity in earnings of non-consolidated companies 6.1 14.9

Profit before income tax expense 247.9 295.2

Income tax expense (267.3) (70.3)(Loss) Profit for the period (19.4) 224.9

Attributable to:

Owners of the parent (11.6) 218.2 Non-controlling interest (7.8) 6.7 (Losss) Profit for the period (19.4) 224.9

(Unaudited)


Cash Flow Statement

USD million 1Q 2020 1Q 2019

Profit for the period (19.4) 224.9 Adjustments for:Depreciation and amortization 166.4 162.7 Equity in earnings of non-consolidated companies (6.1) (14.9)Changes in provisions (0.7) (4.4)Net foreign exchange results and others (104.6) (11.7)Interest accruals less payments 1.3 (3.4)Income tax accruals less payments 224.0 (59.4)Changes in working capital 181.8 181.6

Net cash provided by operating activities 442.8 475.5

Capital expenditures (257.6) (209.9)Proceeds from the sale of property, plant and equipment 0.2 0.2 Acquisition of non-controlling interest (4.5) 0.0 Recovery of loans from non-consolidated companies 0.0 24.5 Decrease (Increase) in Other Investments 97.1 (17.3)

Net cash used in investing activities (164.8) (202.5)

Finance Lease payments (10.5) (9.7)Proceeds from borrowings 190.6 166.1 Repayments of borrowings (60.7) (210.1)

Net cash provided by (used in) financing activities 119.4 (53.6)

Increase in cash and cash equivalents 397.3 219.4

(Unaudited)


Balance Sheet

March 31, December 31,2020 2019(Unaudited)

Property, plant and equipment, net 6,636.3 6,539.6Intangible assets, net 927.8 943.8Investments in non-consolidated companies 409.5 513.6Deferred tax assets 119.8 163.5Receivables, net 506.2 592.6Trade receivables, net 0.4 0.9Other investments 3.2 3.3 Total non-current assets 8,603.2 8,757.3

Receivables, net 220.1 334.7Derivative financial instruments 17.3 1.2Inventories, net 2,083.6 2,158.3Trade receivables, net 991.0 949.7Other investments 115.2 212.3Cash and cash equivalents 906.4 520.0Total current assets 4,333.5 4,176.1

Non-current assets classified as held for sale 2.1 2.1

Total assets 12,938.8 12,935.5

USD million March 31, December 31,2020 2019

Capital and reserves attributable to the owners of the parent 6,499.8 6,611.7Non-controlling interest 1,077.6 1,103.2

Total Equity 7,577.4 7,714.9

Provisions 475.4 613.4

Deferred tax liabilities 571.1 403.3Other liabilities 425.2 507.6Trade payables 0.9 1.2Derivative financial instruments 0.5 0.0Lease liabilities 273.2 298.2Borrowings 1,614.4 1,628.9Total non-current liabilities 3,360.7 3,452.5Current income tax liabilities 42.1 47.1Other liabilities 228.5 240.9Trade payables 994.1 876.8Derivative financial instruments 0.7 3.0Lease liabilities 40.4 40.5Borrowings 694.8 559.8Total current liabilities 2,000.7 1,768.1

Total liabilities 5,361.4 5,220.7

Total equity and liabilities 12,938.8 12,935.5

USD million


90

Net Income4Q19

OperatingIncome

Net FinancialResults

Income Tax Net Income1Q20

First Quarter 2020 Results – Webcast PresentationEBITDA and Net Results

(mill

ion

$)

Higher EBITDA per ton in the 1Q20, on a decrease of cost per ton due to lower raw material and energy costs, partially offset by lower revenue per ton.

Higher shipment volumes, mainly in Mexico.

Better foreign exchange results, mainly due to the depreciation of the Mexican peso and the Brazilian real.

Net income affected by non-cash impact of $189 million deferred tax loss as a result of a 20% depreciation of the Mexican peso.

732

263302

EBITDA4Q19

Shipments Ebitda per Ton EBITDA1Q20

EBITDA 4Q19

EBITDA 1Q20

(mill

ion

$)

Net Income4Q19

Equity in Earnings of

non-consolidated Companies

Net Income1Q20

43

136

(18)

(271) (19)


Ternium’s Debt ProfileComfortable maturity schedule

647

346

663

138

528

2020 2021 2022 2023 2024

Tx Mexico Synd. Loan Tx Investments Synd. Loan

Tx Brasil Synd. Loan Other outstanding long-term debt

Revolving credit facilities

Our main outstanding syndicated loans add to $1.8 billion:

Ternium Mexico: $875 million

Ternium Brasil: $500 million

Ternium Investments S.à.r.l.: $400 million

Other outstanding long-term debt

$63 million (Peña Colorada)

$75 million (Tenigal)

Revolving credit facilities (uncommitted) of $407 million outstanding, mainly in Mexico, Colombia and Argentina

Debt maturity profile Mar’20 ($/million)


Ternium BrasilA strong foundation for Ternium’s next phase of development

5 mtpy high-end slab facility in Brazil

Further integrate Ternium Brasil to take it to its full potential

Increase competitiveness in the high-end Mexican steel market vis-à-vis imports

Improve customer service supported by higher operational flexibility Customized steel products Coordinated product development Enhanced logistics

Realize cost reduction opportunities Coordinated procurement effort (Exiros) IT integration Inventory optimization Benchmarking


MexicoStart-up of new coating lines at Ternium’s Pesquería facility

36%

New hot-dipped galvanizing and painting lines

Started-up during the second half 2019

High-end value-added products for the home-appliance, heating-ventilation-air conditioning (HVAC) and automotive industries

Most advanced painting technology in Mexico

Annual production capacity:

Galvanizing: 350,000 tons

Painting: 120,000 tons


ColombiaGrowth opportunity in the long steel market

Colombian steel market is the fourth largest in Latin America

Imports account for a significant share of long steel consumption

Ternium to expand its participation in the construction sector in the north/northwest of Colombia

Approximately 50% of steel rebar consumption

No local production

Expensive logistics from the mills in central Colombia

New greenfield rebar facility

Annual capacity of 520,000 tons

Start up: second half 2020

Total investment of $90 million


www.ternium.comwww.ternium.com

Documents

Título de la presentación en TradeGothic 30 pto ... · 19902000 2010 Brasil Mexico 2019e 2.7 3.9 1.1 3.5 2000 2010 Argentina Colombia 2019e Apparent steel use (million tons) Source: