<SEC-DOCUMENT>0000891092-15-009702.txt : 20151214
<SEC-HEADER>0000891092-15-009702.hdr.sgml : 20151214
<ACCEPTANCE-DATETIME>20151106151145
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000891092-15-009702
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20151106

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GROUP SIMEC SA DE CV
		CENTRAL INDEX KEY:			0000887153
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS 601
		CITY:			44910 GUADALAJARA JA
		STATE:			O5
		ZIP:			10022

	MAIL ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS
		CITY:			GUADALAJARA JALISCO
		STATE:			O5
		ZIP:			999999999
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>Grupo Simec,
S.A.B. de C.V.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>Calzada L&aacute;zaro
C&aacute;rdenas 601</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>Colonia La
Nogalera, Guadalajara,</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>Jalisco, M&eacute;xico
44440</B></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 12pt 0 24pt 247.7pt; text-align: right; text-indent: 35.3pt; background-color: transparent">November
6, 2015</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Mr. John Cash</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Branch Chief</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, NE<BR>
Washington, DC 20549</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">Re:</TD><TD>Grupo Simec, S.A.B. de C.V. Form 20-F for year ended December 31, 2014</TD></TR></TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in; background-color: transparent"><U>Filed
May 15, 2015, File No. 1-11176</U></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in; background-color: transparent">Ladies
and Gentlemen:</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.4pt; background-color: transparent">We
are writing to respond to the comments set forth in the Commission&rsquo;s staff&rsquo;s comment letter dated September 15, 2015
(the &ldquo;<U>comment letter</U>&rdquo;) relating to the above-referenced annual report (the &ldquo;<U>Annual Report</U>&rdquo;)
of Grupo Simec, S.A.B. de C.V. (the &ldquo;<U>Company</U>&rdquo;), originally submitted on May 15, 2015 pursuant to the Securities
Act of 1933, as amended. For convenience of reference, we have reproduced below in italics the text of the comments of the Staff.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Form 20-F for the year
ended December 31, 2014 </U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Item 5. Operating and Financial
Review and Prospects, page 49</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Consolidated Statements
of Comprehensive Income, pages 57 and 62</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD><I>We note your responses to prior comments one and two. Please confirm that you will revise future filing to clarify the facts
and circumstance that result in: material foreign exchange gains (losses) recorded in each period and material differences between
statutory and effective income tax rates in each period.</I></TD></TR></TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">We
confirm that we will revise future filings to clarify the facts and circumstance that result in: material foreign exchange gains
(losses) recorded in each period and material differences between statutory and effective income tax rates in each period.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in; background-color: transparent">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD><I>Please confirm you will revise future filings to more fully explain how you are managing negative operating trends in your
USA segment. In this regard, we note that as existing sales agreements expire, you will evaluate new agreements. Please disclose
and discuss the typical length and pricing terms of your sales agreements. Additionally, please address the potential risks and
consequences, if these trends continue.</I></TD></TR></TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">&nbsp;</P>


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<P STYLE="font: 11.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt; text-align: right; text-indent: 35.4pt; background-color: white">&nbsp;2&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">We
confirm that we will revise future filings to more fully explain how we are managing negative operating trends in our USA segment.
The negative operating trends in our USA segment are primarily driven by declining demand that severely impacts production volume
and therefore cost. The automotive sector is stable and continues to provide good demand for our products.</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">Typically
about 70% of our business uses a fixed base price that is negotiated annually, plus monthly scrap and alloy surcharges. The remaining
30% is transaction business, where we can adjust the base pricing as required. The current deflationary environment in scrap metal
and commodities, while helping to lower our raw material costs also dampens our ability to secure better prices in the marketplace
and our efforts are single-mindedly focused on managing our costs down to secure levels of profitability without compromising in
any way on quality. Financial resources will continue to be made available as our USA segment tackles the cost curve and restores
the business to profitability.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 35.4pt; background-color: transparent">_________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: transparent; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.4pt; background-color: transparent">The
Company confirms its acknowledgment, in connection with its responses to the comment letter that:</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; text-indent: 0.5in; background-color: transparent">1.&#9;the
Company is responsible for the adequacy and accuracy of the disclosure in the filings;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; text-indent: 0.5in; background-color: transparent">2.
&#9;Staff comments or changes to disclosure in response to Staff comments do not foreclose the Securities and Exchange Commission
from taking any action with respect to the filings; and</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; text-indent: 0.5in; background-color: transparent">3.
&#9;the Company may not assert Staff comments as a defense in any proceeding initiated by the Securities and Exchange Commission
or any person under the federal securities laws of the United States.</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.4pt; background-color: transparent">Please
call the undersigned (+52-33-3770-6734) with any questions you may have regarding the above responses.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 265.5pt; background-color: transparent">&nbsp;</P>

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    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt"><FONT STYLE="font-size: 11.5pt">Very truly yours,</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt"><FONT STYLE="font-size: 11.5pt">GRUPO SIMEC, S.A.B. de C.V.</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; width: 50%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; width: 2%"><FONT STYLE="font-size: 11.5pt">By:</FONT> </TD>
    <TD STYLE="padding-right: 5.4pt; text-decoration: underline"><FONT STYLE="font-size: 11.5pt"><U>/s/ Mario Moreno Cortez</U></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 11.5pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt"><FONT STYLE="font-size: 11.5pt">Name: Mario Moreno Cortez</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt"><FONT STYLE="font-size: 11.5pt">Title: &nbsp;&nbsp;Coordinator of Finance</FONT></TD></TR>
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