According to figures from the National Chamber of the Iron and Steel (CANACERO), in Q1 2013, imports of steel products from China amounted to 143,219 tons compared with 120,934 tons in Q1 2012, representing an increase of 18.4 percent.
Chinese imports have significantly damaged the Mexican industry--while the Mexican steel sector has no national government subsidy and virtually any zero tariffs, China is a closed economy, subsidized, with dumping and countervailing duties above 15 percent from abroad.
In response to requests from the local Mexican industry to curb unfair competition from foreign products, the federal government in this administration has initiated new anti-dumping investigations.
The latest case was initiated on June 4 by the Ministry of Economy against imports of galvanized mesh originating of China. The International Trade Practices Unit (UPCI) of the Ministry of Economy (SE) is investigations the conditions under which such imports occurred between October 1, 2011 and September 30, 2012. However, it is believed that the domestic industry has been impacted by these imports since October 2009. In the Official Journal of the Federation (DOF), the SE reported that imported Chinese mesh was sold at prices artificially lower, with an average undercutting margin between 38 and 52 percent.
Moreover, the SE imposed provisional antidumping duties of up to 60.4 percent against cold rolled coil (CRC) steel from South Korea, which was ruled to have entered the country unfairly. As a result, the Ministry announced antidumping duties on imports of CRC from POSCO and Hyundai Korean firms of 60.4 percent and 6.4 percent, respectively.
According to the complaint, the CRC from South Korea arrived in Mexico at prices 16 to 17 percent below the domestic market.
The domestic steel companies and government authorities have strengthened monitoring and control systems in order to detect steel unfair trade, barriers and apply appropriate sanctions, including alerting the tax authorities to secure the tax payments and impose fines and surcharges.