Ternium S.A. experienced strong upward momentum following a major bullish rating upgrade from Morgan Stanley. The investment firm elevated its rating on the steelmaker from Equalweight to Overweight while significantly raising its target price. Morgan Stanley highlighted an improving North American trade and tariff environment, specifically pointing toward a high probability that the United States could reduce Section 232 import tariffs on Mexican steel. Additionally, expectations that Mexico may increase its own tariffs on foreign steel imports are expected to tighten the domestic market, driving local steel prices higher and boosting operating profitability across the region.

The positive price action is further reinforced by…