Mexico initiates anti-dumping investigation on hot rolled steel imports from China and Vietnam
Steel NewsDate: 05-03-2025 by: Ngoc Cam
On March 3, 2025, the Mexican Ministry of Economy officially initiated an anti-dumping investigation on hot rolled steel imports from China and Vietnam.
This move aims to protect Mexico’s domestic steel industry from the risk of unfair competition posed by low-priced imported goods.
Reason for initiating the investigation
The investigation was launched following a petition filed by Ternium México, S.A. de C.V., one of Mexico’s leading steel manufacturers. The company alleged that HRC imports from China and Vietnam are being sold at prices lower than their fair market value, causing material injury to the domestic industry. According to the petition, this dumping practice has placed significant pressure on local steel producers, necessitating government intervention to maintain fair competition.
The exporters under investigation include:
- China: Major companies such as Ansteel Group, Baoshan Iron & Steel, Jiangsu Shagang Group, among others.
- Vietnam: Key exporters including Formosa Ha Tinh, Hoa Phat Group, and JFE Holdings, Inc.
Scope and objectives of the investigation
According to the Mexican Ministry of Economy, the investigation covers hot rolled steel, including flat steel products made of iron or carbon steel, whether pickled or unpickled and uncoated, with a maximum thickness of 25.4mm.
The relevant tariff codes fall under HS 7208.10.03; 7208.25.02; 7208.26.01; 7208.27.01; 7208.36.01; 7208.37.01; 7208.38.01; 7208.39.01; 7208.40.02; 7208.51.04; 7208.52.01; 7208.53.01; 7208.54.01, 7208.90.99; 7211.13.01; 7211.14.91; 7211.19.99; 7225.30.91; 7225.40.91; and 7226.91.07 of the Mexican HTS.
The dumping investigation period is set from September 1, 2023, to August 31, 2024, while the injury analysis period spans from September 1, 2019, to August 31, 2024. The primary objective of the investigation is to determine whether imported steel from China and Vietnam poses a threat of material injury to Mexico’s domestic steel industry.
The relevant tariff codes for the investigation include HS 7208 and 7211 under the Mexican HTS
Since China and Vietnam are classified as non-market economies (NME) by Mexico, the Ministry of Economy has applied the surrogate country methodology to determine the normal value of the imported steel. Specifically, Brazil has been chosen as the reference country, meaning that the price of hot rolled steel in Brazil will be used as a benchmark to compare with the export prices from China and Vietnam. If the export prices are significantly lower than those in Brazil, this may serve as evidence of dumping.
Impact on Vietnamese steel enterprises
This investigation could have a significant impact on major Vietnamese steel manufacturers, particularly Formosa Ha Tinh and Hoa Phat Group, both of which have been actively expanding their exports to Mexico.
In July 2022, Hoa Phat successfully exported 8,000 tons of rebar steel to Mexico, marking a significant step in penetrating the North American market. Furthermore, in 2024, Vietnam exported more than 260,000 tons of hot rolled steel to Mexico, with HPG (Hoa Phat Group) and Formosa among the leading exporters.
Hoa Phat exported 8,000 tons of rebar to Mexico in 2022
To minimize anti-dumping duties, Vietnamese steel exporters should cooperate with the Mexican Ministry of Economy and comply with investigation requirements. They must submit the exporter’s questionnaire by April 11, 2025, with the option to request an extension if needed.
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