...May 22, 2024 Price volatility affected CAP S.A.'s first-quarter results; however, we expect mark-to-market effects to soften through the year. Although shipment volumes grew 20% year over year to 4 million in the first quarter, a negative mark-to-market effect of $151 million due to iron ore price volatility--as well as low construction demand from China and lower steel demand from the announced suspension of operations at Huachipato--weakened results. Consequently, EBITDA fell 52.9% from the previous quarter, reaching $88 million. For the rest of the year, we expect the Iron Ore Index 62% Fe fines benchmark to average $110 per ton, softening mark-to market- effects, but to decline to $100 per ton in 2025. Even assuming a higher antidumping duty on Chinese steel products, we expect the steel business to underperform in 2024 and break even only by 2025. On April 22, 2024, the Chilean government imposed an antidumping duty of 24.9% on steel bars and 33.5% on steel balls from China, after...
