Steel News

The Mexican government has announced anti-dumping duties on cold-rolled coils imported from Vietnam, with the anti-dumping duties ranging from 11.6% to 79%. These duties have been adjusted to lower levels compared to the initial rates proposed by the Mexican Ministry of Economy in September.Alongside robust growth in export activities, Vietnam's steel products are currently among the most frequently subjected to anti-dumping and countervailing investigations initiated by countries worldwide. Many steel products have faced lawsuits and have been subject to anti-dumping and countervailing duties in major markets such as the United States, the European Union, India, Australia, and more. Most recently, the Mexican government has decided to impose anti-dumping duties on cold-rolled coil products imported from Vietnam.It is known that Vietnam and Mexico are both members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), so Vietnam's cold-rolled coil products enjoy a preferential tariff rate of 0% when exported to Mexico. For the groups of cold-rolled coil products currently under anti-dumping investigation, the total export turnover in 2020 was approximately 50 million USD. Among them, the HS code 7209 for cold-rolled iron and steel products accounted for nearly 80% of the production. This marked the second instance of Mexico initiating a trade remedy investigation against Vietnam, following an earlier anti-dumping investigation on coated steel products in 2021.On July 28, 2022, the Mexican Ministry of Economy initiated an anti-dumping investigation into cold-rolled coils imported from Vietnam based on complaints from the domestic industry. This action was taken in response to the observed unfair international trade practices affecting the country's enterprises. Under the guise of price discrimination, the cold-rolled coil products from Vietnam were deemed to have caused economic harm, leading to a decline in revenue for domestic steel manufacturers.After a period of investigation, the Mexican government has recently implemented anti-dumping duties on cold-rolled coil products imported from Vietnam. Starting from December 29, imported cold-rolled coil products from Vietnam had been subjected to anti-dumping duties imposed by the Mexican government. Specifically, the rates are 11.64% for products imported from Hoa Phat, 25.64% for those from Posco Vietnam and 79.24% for other manufacturers. In comparison, preliminary duties announced in September were 12.77% for Hoa Phat, 25.64% for Posco Vietnam and 81.06% for other manufacturers.The anti-dumping duties are applicable to items with the following HS codes: 7209.16.01, 7209.17.01, 7209.18.01, 7209.26.01, 7209.27.01, 7209.28.01, 7209.90.99, 7211.23.03, 7211.29.99, 7211.90.99, 7225.50.91, and 7226.92.06. Currently, steel products imported into Mexico also require a special import license issued by the Mexican government. In the context where the capabilities to respond to anti-dumping investigations by exporting businesses still have many shortcomings, fostering sustainable growth and exports and avoiding protectionist trade measures requires enterprises to adapt appropriately to the new circumstances. Faced with these challenges, Vietnamese businesses need to diversify risks, explore new export markets and enhance the value-added content of the domestic production chain. By doing so, the manufacturing sector can develop sustainably, minimizing the risk of investigations and applying anti-avoidance measures imposed by importing countries. Additionally, businesses should improve their traceability systems and accounting records to support anti-dumping investigations and facilitate the registration of self-certification mechanisms for the origin of raw materials in products subject to anti-avoidance investigations.

The steel market in Mexico has witnessed a significant increase, especially in September, with consumption rising by 21.8%. These positive figures not only signal economic recovery but also pose promising prospects for the steel industry in the country.Mexico with impressive growth in SeptemberAccording to the latest report, steel consumption in Mexico increased by 21.8% in September compared to the same period last year, reaching 2.72 million tons. This notable figure boosts confidence within the steel industry, signaling a strong potential for recovery in the near future.In addition to the increased steel consumption, the production of finished steel has also defied the negative trend in steel production over the past 6 months, particularly in September. Mexico produced 1.6 million tons of finished steel, marking a 2.9% increase compared to the same period last year.In general, during the first 9 months of the year, the steel industry in Mexico produced 14.48 million tons, a decrease of 12.3% compared to the same period last year. Meanwhile, the consumption of finished steel nearly doubled, reaching 21.48 million tons, a 14.4% increase compared to the same period last year.The significant increase in steel consumption is a positive signal for the steel industry in Mexico. It not only provides favorable conditions for domestic steel producers but also opens up opportunities for exports and international cooperation. The rapid recovery of the steel market is an integral part of Mexico's overall economic recovery.With impressive growth in steel consumption in September, Mexico is entering a phase of robust recovery. Increased demand and supportive economic strategies play a crucial role in driving the development of the steel industry, creating positive prospects for the future.Dynamics boosting steel industry growthA number of crucial factors have contributed to the significant growth of the steel industry in Mexico. One of the most important factors is the economic recovery following the negative impacts of the recession caused by the pandemic. The strong performance of industries, especially construction and manufacturing, has generated high demand for construction materials, including steel.Additionally, in conjunction with Mexico's economic recovery strategy, the government's supportive measures and incentives for investment have also positively influenced the growth of the steel industry. These measures not only provide impetus for new construction projects but also boost consumer industries, enhancing demand for processed steel products.Prospects for the Vietnamese steel industry as the Mexican market growsThe steel industry in Mexico has experienced strong growth, but the production volume has significantly declined, leading Mexico to import steel from other countries to ensure an uninterrupted supply. Mexico is one of the major steel export markets for Vietnam. With the substantial growth in steel consumption in this market, it has opened up opportunities for the Vietnamese steel industry to develop and expand its presence.Enhancing the export of steel products from Vietnam to the Mexican market could elevate the value of Vietnamese steel on the global steel map. Moreover, it is likely to boost sales figures and contribute to foreign currency earnings for Vietnamese steel enterprises.When entering the steel market in Mexico, competing with global rivals is a necessity. Mexico's market is challenging, and to establish a solid presence, Vietnamese enterprises must adhere to export regulations and product quality standards. Ensuring that products meet international standards can instill confidence from customers. This is also an opportunity for the Vietnamese steel industry to improve product quality, reduce production costs, and enhance competitiveness to capture the potential in this market.

August 2023 witnessed a significant decline in the steel production value in Mexico, with a 20.2% decrease. This is a concerning issue for the steel industry of the country, and it reflects the economic challenges and impacts that Mexico is currently facing.Causes of Decline in Steel ProductionImpact of the COVID-19 Pandemic: Although the pandemic crisis began in 2020, its adverse effects continue to linger and affect the Mexican economy. There have been disruptions in the supply chain and a global economic downturn due to the pandemic, placing significant pressure on the steel industry.Challenges in Raw Material Supply: The supply of raw materials for steel production, such as iron ore and coking coal, has faced difficulties due to price fluctuations and scarcity. This has resulted in a decrease in production value due to the shortage of essential materials.Weakening of the Global Steel Market: The global steel industry is also experiencing a decline. Trade disputes and reduced demand in some key regions have created pressure on pricing and steel production within the Mexican steel market.The steel market's impact on the Mexican economyThe decline in steel production in Mexico not only affects the steel industry but also has significant impacts on the country's overall economy. Below are some important economic impacts on Mexico:Impact on the Labor Market: The production decrease can lead to a significant reduction in jobs and an increase in the unemployment rate within the steel industry, affecting the workers in this sector.Impact on Exports: Mexico typically exports steel to many other countries. The production decline can affect the ability to export and generate foreign exchange revenue from the markets to which it exports.Impact on Company Finances: Steel manufacturing companies may have to deal with losses and financial difficulties, which could lead to the weakening of the steel industry.Challenges for the Mexican steel industryThe decline in steel production is a significant challenge for the Mexican steel industry. To overcome the current difficulties, the steel industry in Mexico may need to focus on improving productivity, optimizing production processes, and finding ways to enhance investment in infrastructure and human resources. Additionally, the Mexican government should support this industry through policies and economic stimulus measures.The 20.2% decline in steel production in Mexico in August is a warning signal for the country's economy and steel industry. Finding ways to overcome the current challenges will play a crucial role in ensuring stability and sustainable development in the future.Opportunities for the Steel Market in VietnamWith the decrease in steel production in Mexico, it presents a significant opportunity for Vietnam to enhance its steel exports to the Mexican market and other markets previously served by Mexico. This is an opportunity for the Vietnamese steel industry to expand its export market and generate foreign exchange revenue. Additionally, the decline in steel production in Mexico also creates an opportunity for Vietnamese businesses and the government to strengthen international cooperation and establish collaborative relationships with Mexico and other countries, thereby boosting exports and the development of the Vietnamese steel industry.The reduction in steel production in Mexico in the past August has affected the nation's supply source. To ensure an uninterrupted supply, Mexico has had to import steel from other countries. With internationally standardized product quality and reasonable pricing, Vietnamese steel is a valuable supply source for Mexico's steel industry. If you have a demand to import steel products with origins in Vietnam, please don't hesitate to contact us here.