The Mexican government issued a preliminary resolution to the sunset review to extend for 20 more days the review of the commitments adopted by the Korean steel companies Hyundai Hysco and Posco whether to suspend the antidumping investigation procedure on imports of cold rolled sheet (CRC) from South Korea with volumes and prices not harmful to the Mexican domestic market.
The Ministry of Economy reported that “the administrative procedure for reviewing the commitments assumed by the exporters Hyundai Hysco and POSCO continues (...), without modifying the annual export volumes”.
Almost 12 years ago (in October 2012), the Mexican subsidiary of the Italian-Argentinian steel company Ternium asked the Mexican government for an antidumping investigation into imports of cold rolled sheet (CRC) from South Korea.
In June 2013, provisional countervailing duties (CVD) of 6.45 percent were imposed on Hyundai Hysco and 60.40 percent on Posco and the rest of Korean exporters. However, six months later, the steelmakers offered voluntary commitments to “suspend the antidumping investigation procedure.”
The product enters Mexico under tariff codes 7209.16.01, 7209.17.01, 7209.18.01 and 7225.50.91 of the General Import and Export Tax Law (TIGIE). Also for other tariff fractions of the Eighth Rule mechanism. The “Eighth Rule” is a special import permit granted by the Mexican government.
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 (AAGR) 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 5.8 percent.
In January of this year, the Ministry of Economy reported that the sunset review would be carried out with an examination period from October 1, 2022 to September 30, 2023, and the analysis period from October 1, 2018 to September 30. 2023. This was proposed by Ternium.
The Mexican government relied on information from two other national producers, Galvasid and Tyasa. Altos Hornos de México (AHMSA) requested information, but due to its paralysis due to insolvency, it did not support the investigation.
The Mexican government has until July 6 to issue a final resolution to the sunset review.