So, we don’t have to divest anything from Ternium Brazil, probably we will continue consuming most of the slabs in our own operations. Having said that there are customers and a partner of us that is that needs slabs for the long-term in Brazil. So we’ll probably, will increase our selling to USMCA and we continue buying in the market, some slabs for Ternium as a general, that’s our view when these new capacity come into line. Volume specific of the automotive industry from Brazil is increasing. I would say that 2023 will be around – I think 1.2 million tons specific for Brazil. Remember in Mexico, we sell around today around 2 million tons to the automotive industry.
Unidentified Analyst: Okay, perfect, very clear. Thank you so much.
Maximo Vedoya: You’re welcome.
Operator: Your next question comes from the line of Isabella Vasconcelos from Bradesco BBI. Your line is open.
Isabella Vasconcelos: Thank you. Good morning, thanks for the opportunity. I have one question here on my end. In terms of Mexican demand, you mentioned that there is destocking happening in the commercial market. So I just wanted to understand where do you think that stock are currently at in the supply chain is already above-average or if we just continue to see more restocking happening in Mexico in the coming months?
Maximo Vedoya: Okay, thank you. Good morning, Isabella and thank you very much. I think the restocking is just starting to be honest, when you see the apparent consumption in Mexico the decrease 2% last year. Although GDP in Mexico increases, you see that through the year, especially in the second half, there was a destocking or profound destocking in Mexico. So I’m expecting that these restocking and we see it in all the value change. There not much stock in the value, change in Mexico. So I think it’s going to continue for a couple of months or at least a couple of quarters. And then as I said, industrial demand, we’ll come on, there are some industries that are increasing automotive industry is one of them we have huge problems in the automotive industry in the consumption of the automotive industry in Mexico, because of the lack of components, but we are seeing in January that most of the OEMs in Mexico are producing again.
Without any stoppage, because of lack of components and it seems that the supply change in the automotive industry is already working. So we are expecting more demand from them. And I think that in the second half of the year or in the second quarter demand for other industries are going to come back. So that’s our view that we have from the Mexican market. I hope it helps lsabella.
Isabella Vasconcelos: Yes, that’s very helpful, one quick follow up on near shoring, have you already been seeing actual demand for near shoring products – projects or do you think that something to expect in later on in 2023/2024?
Maximo Vedoya: No, I mean in all our numbers for 2022 and 2023, we are not seeing demand. Except the demand you have in the construction of the facilities that takes a lot of steel, of course, but we are not seeing that demand, because of demand. That production is coming onboard, late ’23, the first one we saw last year and it’s going to come in ’24 and ’25. That’s what I said – why I said in the beginning that near shoring, it’s something that is happening, that we are seeing, because we are seeing the buildings and the factory has been built. But this is coming in a couple of years, when all the production facility is running.
Isabella Vasconcelos: That’s clear. Thank you.
Maximo Vedoya: You’re welcome.
Operator: Your next question comes from the line of Alfonso Salazar from Scotiabank. Your line is open.
