Maximo Vedoya: I think there are two different things Carlos, and make me clear. I mean, going in the primary sector, as you said, grains and iron ore, I think it’s more of a commodity market. And so, it’s not that China is doing Brazil any favor or Argentina buying the grains. I mean, it’s a commodity market where the price is set in a very different environment and has nothing to do with Brazil, China, or anything. In the industrial sector, I think it’s very different because what you cannot permit or what you cannot compete with is unfair trade. And what we’re talking here is about unfair trade. And that is important. I mean, Canada exports to China a lot. Europe exports to China a lot of equipment and everything. Nevertheless, what we have to do is respect the rule of law and respect the rule that you cannot sell into a market with unfair practices of trade.
And that’s the thing that the Brazilian steel industry and I think other industries should start fighting in Brazil. If you see what the story of USMCA or the story of Mexico, it’s a story of reindustrialization, of relocalization, but reindustrialization, where clearly you have much more higher salaries for people from the primary sector. And Brazil has gone for the last 10 years in a very different road. And I think that’s some of the problems that Brazil is having. And so making a case for unfair trade, for defending from unfair trade, it’s a very valid case for Brazil. And it’s a thing that the government should go back to the thinking several years ago, where they did that. So I think it’s a completely different position. I don’t know if I’m clear about this.
Carlos.
Carlos De Alba: Very clear.
Maximo Vedoya: And again, it’s something that it’s making very huge. I mean, I have a lot of people from Brazil asking me, what is Mexico doing very well? Because Mexico is doing very well, to be honest. And what Mexico is doing very well is exactly this. It’s the near showing is fighting unfair trade. It’s no other thing than that. And for Brazil to go this way to have increasing in demand to have increasing in growth, you have to go this way, you have to defend your industry. If not, you’re going to primarize even more the economy, which everybody knows is not very good.
Carlos De Alba: Thank you very much, Maximo.
Maximo Vedoya: You’re welcome, Carlos.
Operator: Thank you. Your next question comes from the line of Caio Greiner with BTG Pactual. Please go ahead.
Caio Greiner: Hi, good morning, guys. Just a confirmation from my side, the call quality is a little poor here. You guys mentioned your CapEx estimates for 2024. Can you please repeat that?
Maximo Vedoya: We didn’t. I don’t know if we mentioned. We did…
Pablo Brizzio: We mentioned that we are expecting to have a CapEx for 2024 of $1.5 billion at Ternium and around $300 million for using it. Remember, Caio, our expected CapEx for Ternium in 2023 was $1 billion. But because of some of the delays in the contract of Pesquería, that CapEx is going to be $850 million in only Ternium. This $850 is going to go to $1.5 billion because all the investment in Pesquería starts coming in. And in Usiminas, it’s going to decline from $650 this year to $300.
Caio Greiner: All right. That’s perfect. Thank you very much.
Pablo Brizzio: You’re welcome, Caio.
Operator: Thank you. Your next question comes from the line of Camilla Barder with Bradesco. Please go ahead.
Camilla Barder: Hi. Good morning, guys. I think most of my questions have been answered right now. So I just wanted to answer a quick question, Capital Allocation Front. There has been a large working capital release this quarter. So I just wanted to get some more color on what you are expecting in terms of working capital in the coming quarters. Thank you.
Maximo Vedoya: Okay. Camila, let me comment into that because a significant portion of the working capital release during this quarter was coming from Usiminas. As we were discussing, in order to prepare the relining of the blast furnace, Usiminas needed to build up the inventories of slabs. So as the month ago, in the relining process, they started to use that slab. So there was a capital — a working capital reduction in relationship to it. In the case of turning, there was also some working capital reduction. And we are expecting to sustain a similar level of working capital in the coming quarters. As we mentioned, we are not expecting to see much difference in the cost of our product, in the cost of our raw material, and some decrease in the price of our product. So similarly, or in line with what you saw this quarter in Ternium, is what we are expecting to see next quarter in Ternium 2.
Camilla Barder: Okay, thank you.
Maximo Vedoya: You’re welcome.
Operator: Thank you. I would now like to turn the call back over to Ternium’s CEO for closing remarks. Please go ahead.
Maximo Vedoya: Thank you. And thank you all very much for participating on today’s call. As usual, feel free to contact us if you have any questions. Thank you again, and goodbye.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
