The US Section 232 tariffs will likely have diverging effects for Mexican producers, including local integrated steelmaker Altos Hornos de Mexico (AHMSA) and ferroalloys producer Minera Autlan, according to media reports.
Local steelmakers like AHMSA and Grupo Collado will reportedly be strongly affected, as they export 8 and 11 percent of their production to the US, respectively, said a media report from El Financiero.
On the other hand, Minera Autlan would experience a positive effect, as the company said the US would demand more manganese-based ferroalloys once it is no longer self-sufficient in the production of the commodity. As the US intends to boost its own domestic steel production, it would need more ferroalloys, and Minera Autlan would be well positioned to supply the product.
AHMSA has echoed Canacero’s comments last week claiming Mexico should reciprocally add duties to US steel products entering the Mexican border. AHMSA said the 25 percent import tariff will have a $2 billion impact for Mexican steelmakers.
El Financiero said Mexican exporters, including Ferromex, have suspended steel shipments to the US following Trump’s announcement. Ferromex reportedly sends about 15,000 rail carloads of steel products each year. No further details on the quantity of steel Ferromex exports was disclosed.