Mexico's Coated Flat Steel Market and the role of imports from Vietnam
Steel NewsDate: 25-05-2023 by: Ngoc Cam
Mexico is issuing anti-dumping duty policies to the steel industry imported from China, Taiwan, France, and Vietnam, ... to tighten the dumping situation, causing severe damage to the manufacturing industry's domestic steel production. However, with the efforts of the Vietnamese government in promoting import and export, Vietnamese steel importers in Mexico still enjoy many attractive incentives thanks to the lower anti-dumping duty rate than many other countries.
1. Mexico: Increase anti-dumping duty on flat steel imported from China
On April 5/2019, The International Trade Practices Unit (UPCI) of Mexico's Ministry of Economy opened an anti-dumping investigation on stainless steel products from China and Taiwan. Products subject to investigation in the HS code group include 7219.34.01, 7219.35.01, and 7220.20.02. The investigation got its official results on November 21, 2019, when the Mexican authorities imposed a temporary anti-dumping duty on goods imported from China with a duty rate of 88.42 – 121.46% depending on the company. Until October 2020, Mexico imposed an anti-dumping duty on stainless steel imports from China of $0.05 - $0.63/kg.
Mexico's imposition of anti-dumping policies on steel in the market will protect domestic businesses and consumers against "takeover prices" and monopoly prices of importers from foreign companies. However, this also makes Mexican steel importers limited in supply and lose profits from cheap, quality products from abroad.
2. Mexico: Extension of anti-dumping duty on some steel products imported from China, France, and Germany
On June 25, 2014, two of Mexico's leading steel companies, Altos Hornos de México (AHMSA) and Ternium Mexico SA de CV, filed a complaint about dumping by exporters from China, France, and Germany. As a result, on September 12, 2014, the Mexico Ministry of Economy initiated an anti-dumping investigation on imported steel products, including hot-rolled coil, hot-rolled coil, hot-rolled coil plate, coil sheets, or hot rolled bands. The products under investigation are classified under the following HS codes: 7208.3601, 7208.3701, 7208.3801, 7208.3901, 7225.3002, 7225.3003, and 7225.3099.
The competent authority of Mexico decided, on May 22, 2015, to impose a temporary anti-dumping duty on the aforementioned imported goods from China, France, and Germany, specifically:
- The duty rate applied to German steel imports is 36.08%, and ArcelorMittal Bremen GmbH is 25.43%.
- The duty rate applied to China's steel imports is 78.96%, and Tangshan Iron and Steel Group, Co. Ltd is 72.16%.
- The duty rate applied to French steel imports is 78.96%, and ArcelorMittal Mediterranée, S.A.S is 12.42%.
On December 17, 2020, before the 5-year period of the decision to apply anti-dumping duty, the Mexican authorities conducted a sunset review of the official duty rate for goods imported from France, Germany, and China. Accordingly, Mexico has decided to impose definitive anti-dumping duty on steel imported from Germany of 137 USD/ton for ArcelorMittal Bremen and 166.01 USD/ton for other exporting companies. The duty rate on steel imported from China is $335.60/ton for Tangshan and $354.92/ton for other exporting companies. The duty rate for steel imported from France is 67.54 USD/ton for ArcelorMittal Mediterranee and 75.59 USD/ton for other exporting companies. The duty rate is extended for 5 years, valid from July 23, 2020.
3. Solutions to import Vietnamese steel in the context of anti-dumping in Mexico
According to data from the Trade Remedies Administration of the Ministry of Industry and Trade of Vietnam, Mexico, and Vietnam are all members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). As a result, Vietnam's tariff support regulations grant a preferential duty rate of 0% on many steel products, including coated flat steel. Thanks to this duty advantage, Vietnam's large steel enterprises have boosted exports to Mexico with a total value of up to 220 million USD, with flat-rolled, roller, coated, plated, and coated steel products accounting for nearly 80%. However, this rapid increase in exports has caused serious threats and damage, causing two large steel companies, Ternium Mexico and Teniga, to complain about imported painted flat steel from Vietnam, affecting the domestic steel industry.
The Mexico Ministry of Economy began an anti-dumping investigation in August 2021 into imported Vietnamese galvanized steel and painted flat steel products with the following HS codes:
7210.30.02, 7210.41.01, 7210.41.99, 7210.49.99, 7210.61.01, 7210.70.02, 7212.20.03, 7212.30.03, 7212.40. 04, 7225.91.01, 7225.92.01, 7226.99.99, 9802.00.01, 9802.00.02, 9802.00.03, 9802.00.04, 9802.00.06, 9802.00.07, 9802.00.00.04, 9802.00.06, 9802.00.07, 9802.0.320, 09.08.09.09.09 9802.00.19.
The Unit of International Trade Practices (UPCI) of the Mexico Ministry of Economy issued a decision to reduce tax on steel products imported from Vietnam after the conclusion of an anti-dumping investigation that the industry Vietnamese steel operates under the market mechanism. The new duty rate for Vietnamese steel products ranges from 0-12.34% (from September 14, 2022). Specifically, the duty rate of 12.34% for products of Hoa Phat Group (lower 2.02% than the preliminary duty rate), Ton Dong A is 10.84% (lower 1.24% than the preliminary duty rate), for POMINA is 8.29%, for Hoa Sen group is 7%, for Nam Kim is to 6.64% and for the remaining companies will decrease 1.5% to 10.84 %.
This duty rate is significantly lower than the anti-dumping duty that Mexico imposes on other steel exporting countries. With the preferential duty rate of UPCI, it will help Vietnamese steel enterprises maintain their price advantage and continue to promote steel exports to the Mexico market. Data from the International Trade Center (ITC) 2020 shows that Vietnam achieved 170 million USD from exporting galvanized steel sheet to Mexico and obtained 370 million USD in 2019.
Above is information about Mexico's latest anti-dumping duty policy for steel products imported from China, France, Germany, Vietnam,... Hopefully, the updated news of MRS Steel has provided importers more suggestions to import reputable and quality steel. Any need to import prestigious and high quality Vietnamese steel, please contact MRS Steel via Email vanloc@mrssteel.com.vn for the most dedicated support.
