The Mexican government initiated the sunset review and the commitments adopted by the Korean steel companies Hyundai Hysco Co. and Posco to suspend the antidumping investigation procedure on imports of cold rolled sheet from South Korea with volumes and prices not harmful to the domestic market of Mexico.
“The beginning of the administrative procedure to examine the validity and the ex officio review of the commitments assumed by the exporters POSCO and Hyundai Hysco on imports of cold rolled sheet originating in Korea, regardless of the country of origin, is declared,” published the Mexican government through the Ministry of Economy (SE) in the official government gazette (DOF).
Prior to the commitment of Korean companies to suspend the antidumping investigation process, the Mexican government, a decade ago (in June 2013) decreed provisional countervailing duties of 6.45 percent on imports of Hyundai Hysco and 60.40 percent on imports of Posco and the rest of the Korean exporters.
Currently, the product enters Mexico through tariff sections 7209.16.01, 7209.17.01, 7209.18.01 and 7225.50.91 of the General Import and Export Tax Law (TIGIE).
Hyundai Hysco committed to exporting different volumes to Mexico, at prices that are not harmful to the Mexican domestic market. It began in 2014 with the import of 10,000 metric tons (mt) to conclude a first period in 2018 with 30,000 mt, which meant an average annual growth rate of 31.6 percent. However, it was modified to conclude 2018 with 45,000 mt, which meant AAGR of 45.6 percent.
Posco committed to exporting different volumes to Mexico, at prices that are not harmful to the Mexican domestic market. It began in 2014 with the import of 400,000 mt to conclude a first period in 2018 with 500,000 mt, which meant an AAGR of 5.7 percent. However, it was modified to conclude 2018 with 545,000 mt, which meant AAGR of 8.0 percent.
For the 2019-2023 period, Posco said that it would start with 547,500 mt and conclude with 661,586 mt, implying an AAGR in the second period of 4.8 percent. For the period 2014-2023 it is an AAGR of 13.4 percent.
However, since last November, the Mexican unit of the Luxembourg-based steel company: Ternium, requested the Ministry of Economy to begin the examination of the validity of the commitments assumed by POSCO and Hyundai Hysco.
The Mexican government reported that the period of examination and ex officio review was set from October 1, 2022 to September 30, 2023, and as the analysis period from October 1, 2019 to September 30, 2023.
According to data from Canacero, they show that in Mexico the only producers of cold rolled sheet (CRC) are AHMSA (paralyzed by insolvency), Ternium and Tyasa.