Mexican steelmaker moves back to profitable operations following strong growth in domestic sales, coupled with higher prices.
The figures of production, consumption and trade from 2016 closed with a downgrade, which is a picture from the Latin American steel industry.
The resulting company will have combined crude and rolling steel capacities of 5.6Mt/y and 5.4Mt/y, respectively.
Brazil's Vale hopes its pellet JV obtains key licenses, as it rules out a potential acquisition of partner BHP Billiton's stake.
Move follows probe into allegations that six nations were dumping steel at below market value.