On the other hand, costs, we continue to see some reduction and we are expecting to see that coming into the first quarter results. So all-in all and to give you more precise answer and summarizing the whole thing as I’ve been saying, we will start to recover and return to more normal levels in the first quarter of the year, not yet in the range that we are expecting to have that, but we should be approaching that level at the end of the second quarter or beginning of the third quarter.
Maximo Vedoya: I hope Caio, with that we answer the two questions.
Caio Greiner: Yes, just one point on the project still. Can you guys provide any color on what you’re expecting in terms of cost for the EAF plus DRI facilities. In terms of cost per ton for your slab production operations in the – for the announced projects, not the total CapEx, but your expected cost per ton.
Maximo Vedoya: So, I mean it’s very deep. Yes, now I understand the question Caio, I’m sorry. It’s very difficult to provide a number because as you might expect some part of that depends on the cost of our raw materials. To put some numbers and I put the numbers that are today. Slab market price are around $700 and the operating cost of this project if we take, today’s numbers will be around $550. That’s what I can tell you about the cost.
Caio Greiner: That’s helpful. Thank you, Maximo. Thank you, Pablo.
Maximo Vedoya: You’re welcome Caio.
Operator: Your next question comes from the line of Timna Tanners from Wolfe Research. Your line is open.
Timna Tanners: Hi, good morning guys, and thanks for the great detail. I wanted to follow up on the last question and get a little more color on how you’re thinking about volumes. So on the last question the answer you gave was about margins returning to more normal. When you talk about normal, I just want to reiterate is that the historical guide of 15% to 20% target that you’re talking about when you refer to normal EBITDA in the steel making segment. That’s the first question if you could just clarify that would – it sounds like definitely in that range second half. And then kind of approaching that in the first half. Does that mean first quarter would be more like fourth quarter or improving from the fourth quarter. And then my second question like I said on volumes, obviously with AMSA not operating fully, there seems to be kind of a gap in availability in the Mexican market.
So is it possible to see a meaningful uptick in your volumes to fill that gap given the good demand you described. Just any more color on where volumes could go to given your availability would be great. Thanks, a lot.
Maximo Vedoya: Thank you, Timna, good morning. Yes, the first question, the answer is yes. When we refer to normalized margin is between 15% and 20% in the first quarter, what we expecting is not to be like the fourth quarter, a little bit more near the lower range of these margin. We are not getting the normalized range, but would be a little bit more closer to those numbers, then the fourth quarter. Volumes in Mexico. Yes, volumes in Mexico are going to increase in the two following quarters. Clearly, one aspect of that is AMSA. The second aspect that you can see is that we are gaining market-share against imports. And so we are starting to work our facilities at much higher depreciation rate, especially the old mill, the old – it’s not old, its renewed, but the Churubusco facility which was the one that was working at a very low capacity.
