Reasons Mexico should import steel from Vietnam

Reasons Mexico should import steel from Vietnam

BlogDate: 26-10-2023 by: Ngoc Cam

Mexico is a country with a growing manufacturing industry, particularly in the automotive, construction and machinery sectors. As such, there's a significant demand for steel. According to Statista's report, in 2022, Mexico imported approximately 10.64 million tons of various finished steel products. This trend is projected to continue due to the stabilization and recovery of the global economy. Many Mexican companies have chosen to import steel from Vietnam as a trustworthy and quality source. Let's explore with MRS Steel the reasons why Mexico should consider importing steel from Vietnam.

1. Overview of Mexico's Steel Market

According to the Association for Iron & Steel Technology, Mexico's steel production may reach 19.5 million tons in 2023, marking a 7.1% increase. Leading steel companies in Mexico include Altos Hornos de México (AHMSA), Ternium México, and Deacero, which specialize in products like stainless steel, cold-rolled steel, hot-rolled steel, and construction steel, greatly influencing the diversity and quality of steel in the Mexican market. However, due to various reasons such as market fluctuations, consumption demand, production capacity, or production costs, companies have to seek additional steel supplies from abroad, including Vietnam.

2. Should Mexico Import Steel from Vietnam?

Vietnam is a familiar and preferred steel import market for Mexican customers because of the following substantial advantages:

Competitive Pricing

Vietnam offers more competitive steel prices compared to many other countries due to its low production costs and large production scale. Rich in natural resources and minerals, Vietnam always has an abundant supply of raw materials. The country's cheap labor also provides an optimal condition to minimize costs.

Consistent Quality

In recent years, Vietnam has consistently invested in advanced manufacturing technology, directly importing from the world's largest metallurgical equipment brands such as Danieli and Tennova. FDI-funded projects and steel mills enhance production capacity, catering to both domestic and international demands. Today, Vietnamese steel products meet the quality standards of demanding markets like the USA, Europe, Australia, and Japan,...

Favorable Trade Relationships

Both Vietnam and Mexico are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This membership promotes positive trade relations, with Vietnam benefiting from a 0% tariff rate for many steel products, including flat-rolled, galvanized, plated, and coated steel when exported to Mexico.

Rational Trade Defense Measures

Mexico has implemented numerous trade defense measures against steel imports to prevent dumping. The International Trade Practices Unit (UPCI) of Mexico's Ministry of Economy imposed anti-dumping duties on steel products from countries like China, Taiwan, France, and Germany, with rates as high as 78.96%. Investigations against galvanized and color-coated steel products from Vietnam began in August 2021. However, thanks to the efforts of the Vietnamese government, Mexican importers enjoy much lower anti-dumping duties compared to other countries, with rates ranging from 0-12.34% (effective from September 14, 2022).

Advantages in Shipping Process

Vietnam's strategic location with over 3,200 km of coastline enables direct shipping to many countries without transit. The country is investing in building major ports to enhance cargo handling capacity and reduce waiting times. Numerous direct sea routes between Vietnam and Mexico, coupled with free trade agreements with various countries and regions, minimize trade barriers and bolster maritime transport relations. Thus, steel orders from Vietnam to Mexico are promptly delivered at optimized costs.

3. Reputable and Quality Suppliers of Vietnamese Steel

While Vietnamese steel is known for its quality and affordability, to find a reputable and quality source, customer must understand the domestic market and manufacturing mills. To save time and cost in sourcing, many importers have approached MRS Steel for A-Z assistance.

With over 12 years of experience, MRS Steel specializes in sourcing steel exports to numerous countries. Their vast network includes the largest steel producers in Vietnam, enabling customers to access the most suitable products. Moreover, MRS Steel's experienced team collaborates with factories, customs, shipping entities, and other stakeholders, ensuring a smooth and easy steel import process from Vietnam.

In conclusion, MRS Steel has highlighted why Mexico should consider importing steel from Vietnam, as it's an ideal choice for affordable, high-quality, and diverse steel products. For any steel import quotations, Mexican clients are welcome to contact for the best assistance.