The authorization of permits for the import of steel products to Mexico has worsened in recent days. In the current scenario, in some cases the opportunity to generate new jobs has been lost, and it has had repercussions on Mexican industrial production due to the bureaucracy of the Ministry of Economy in the face of the new federal government that began last month, some businessmen warned SteelOrbis.
“The impact is on everyone. The problem worsened with the change of government. We had two shipments of steel of the same type, produced by the same mill for the same client in Mexico. We made the request with the same requirements to the Ministry of Economy. One permit was authorized and the other was rejected,” commented a steel importer to SteelOrbis.
“This does not make sense. It is steel manufactured by American mills. I would understand that there is possibly a problem if the producer is from China or another Asian country. I don't understand why one permit is rejected and another is authorized," the businessman explained.
Since the entry of the new rules for the import of steel last April, SteelOrbis has documented the delay in authorizations. Since then, support has been requested from the Ministry of Economy, however there is no response.
SteelOrbis also requested information from the Mexican Chamber of the Iron and Steel Industry (Canacero) and the National Confederation of Steel Distributors (Conadiac) regarding this matter, however there was no response.
Another importer commented that his import permit for American steel has been rejected three times by the Ministry of Economy. This implies a delay of more than a month for the Mexican client who needs that steel for their production process. In addition to extra costs for the storage of the product in Mexican customs.
Industry data show that steel import volumes have been in contraction since last May, which coincides with the new import rules imposed since April 15. With the most recent public data, the contraction in May (15.8 percent) continued to June (13.8 percent), July (7.0 percent), August (10.3 percent) and September (18.6 percent).
Another importer commented that one of his clients in Mexico needed steel for the repair of railroad cars. However, “it was impossible because of Mexican bureaucracy. The repair was done in the United States”.
Steel industry players reiterate that they cannot continue to cover additional costs of import logistics because the laws in Mexico are not clear. They ask that the Mexican government through the Ministry of Economy meet with the steelworkers as it has already done with German companies in the automotive, pharmaceutical, chemical, energy and transportation industries or as Ebrard has done with the businessmen of the Mexican Association of Industrial Parks (AMPIP).