Mexico to impose Antidumping on steel coil from China

The Mexican government’s recent decision to impose anti-dumping duties on steel coil imports from China has sparked a rift between the country’s steel and automotive industries, reigniting a debate over whether Mexico should adopt a more protectionist stance over trade policy.

The government announced several additional measures to support domestic steelmakers, including strengthening customs controls to block the entrance of illegal steel. But authorities stopped short of meeting local industry demands for a 15% blanket tariff on all steel imports from China. Mexico doesn’t apply import tariffs on steel.

As a result of the global steel glut caused by falling demand and excess output by China, Mexican steel producers have announced thousands of layoffs and have been lobbying in recent weeks for the imposition of tariffs.

The automotive industry cried foul, however, warning that setting up more protective measures could end up hurting the competitiveness of one of Mexico’s best-performing manufacturing sectors. The Mexican auto industry imports around 90% of the steel it uses.

The dispute shows how even champions of free-trade such as Mexico can face policy dilemmas. The government of PresidentEnrique Peña Nieto is seeking a delicate balance between supporting a labor-intensive industry that pays higher-than-average wages, and remaining one of the most open economies in Latin America.

“We want a smart integration of Mexico in the global economy. Yes, we want to continue being a country that welcomes free trade, but active enough to battle unfair competition,” said Economy Minister Ildefonso Guajardo.

China produces as much steel as the rest of the world combined, but as its growth slows, the excess steel that Chinese industry doesn’t need is washing up overseas. Above, a factory worker at a steel products plant in Huaibei, China.
China produces as much steel as the rest of the world combined, but as its growth slows, the excess steel that Chinese industry doesn’t need is washing up overseas. Above, a factory worker at a steel products plant in Huaibei, China.

India and the European Union have also recently slapped anti-dumping duties on Chinese steel, as China’s massive state-owned steel industry floods the world with exports.

Mr. Guajardo said imposing tariffs wouldn’t be the best solution. “Tariffs go against all market participants, and that could generate distortions along the value chain,” he said.

Francisco Orduña, the head of institutional relations at Mexico’s biggest steel producer Altos Hornos de Mexico, or Ahmsa, said the latest measures are “a positive step” that could limit planned layoffs at the company. A spokesman for the automotive industry association had no comment on Thursday’s measures.

Disagreements between suppliers and users of steel began in June, when Mexico imposed anti-dumping duties of up to 103% for cold-rolled flat steel from China, after it was determined that Chinese exporters were selling their products at dumping prices due to heavy government subsidies. Similar duties were applied to hot-rolled steel coil. Both products are essential for the automotive industry.

The move came after Ahmsa said it was cutting 4,500 employees and reducing production by 20%. Mexico’s unit of steel giant ArcelorMittal is also planning to cut 2,800 jobs and DeAcero another 2,500.

steel coil antidumping

Steel imports in Mexico rose 11% in the January-May period compared with the previous year, while production fell 5%, according to the steel industry chamber. Steel imports from China jumped 113%. China’s authorities have publicly opposed any measures against its steel exports, saying its products are highly competitive.

“We’re becoming a country of assembly plants, while Mexico is losing a national industrial base. No country can expect to become an economic power without its own industry,” said Mr. Orduña of Ahmsa.

Mexico’s auto industry association, which represents foreign auto makers such as General Motors and Nissan, disagrees on applying tariffs to steel imports.

“Mexico can’t change the rules of the game. We can’t introduce new elements that will impact on our competitiveness and growth,” said Eduardo Solís, president of the association, earlier this week.

Auto makers are investing billions of dollars in new assembly plants and expansions, promising to bolster Mexico’s position as the world’s seventh-largest auto producer and fourth-biggest exporter.

Mexico burnished its free-trade credentials in 1993, signing the North American Free Trade Agreement with the U.S. and Canada. It now has trade agreements with 46 other countries, including the European Union, Japan, and a host of Latin American nations.

The opening has spurred business investments and benefited consumers, who can now find all kinds of products on supermarket market shelves and in stores, analysts say. Mexico’s total trade has increased to around $800 billion in 2014 from $115 billion in 1993.

“Free trade has been a success story for Mexico. To change course and impose tariffs on steel would only mean rises in prices for consumers and for the thriving manufacturing industry,” said Luis de la Calle, an economist and former Mexican trade official.

But critics of the open-trade policies say Mexico lacks effective tools to support local producers, having more lenient rules regarding unfair competition than some developed nations. While Mexico has established so far 15 anti-dumping duties against Chinese steel, the U.S. has set 158 and the European Union 85.

“Mexico has to stimulate added-value national industries via tougher actions, as most countries do,” said Mauricio de María, a former head of the U.N. Industrial Development Organization. “What assembly plants export, in many cases, are imports manufactured by a cheap labor force.”

The Economy Ministry said it will try to raise the efficiency of its anti-dumping inquiries, which often take years to complete, and match legislation with those of Mexico’s main trade partners.

But in private, some in the steel industry remain skeptical. “Too often, the Chinese seem to be smarter than the government,” said a senior official of a steel company who asked not to be named.

Mexico To Slap Anti-Dumping Duties On Steel Imports

Mexico Antidumping Hot Rolled Steel Coil…

Mexico’s Ministry of Economy has initiated an anti-dumping investigation on hot-rolled coil steel (HRC) imported from Germany, China and France.

Mexican steelmakers Altos Hornos de Mexico (Ahmsa) and Ternium have requested that anti-dumping duties be applied to imports of HRC from Germany, China and France at the rates of 27.2 percent, 102.9 percent and 14.4 percent, respectively.

The trade association for the country’s iron and steel industry, known as Canacero, said in a statement that imports of HRC from the three countries under investigation increased by 686 percent in 2013, thereby “directly affecting Mexican manufacturers.”

The Ministry of Economy will seek to determine whether HRC from the three countries was sold in Mexico at below-market prices. HRC is used in the automotive industry, and in the manufacture of piping.

Source: www.tax-news.com

What is the best country to import Coated Steel Coil?

Hot Dip Galvanized Steel – Nam Kim Steel

DEFINITION

Hot Dip Galvanized Steel is continuously coated on both sides with a zinc coating. The hot dip process, pioneered by Nam Kim Steel in Vietnam, provides a tight metallurgical bond between the steel and the coating. This process results in a material with the strength and formability of steel plus the corrosion protection of zinc. Zinc protects the base metal by providing a barrier to corrosive elements and also by the sacrificial nature of the coating.

Hot Dip Galvanized Steel is available with special surface finishes, tailored for specific applications, and in a variety of base metal grades and coating weights. Hot Dip Galvanized Steel is widely used in many applications in the automotive, appliance, construction, HVAC, and other industries.

PRODUCT FEATURES

Corrosion Resistance

The zinc coating protects the base metal by providing a barrier to corrosive elements and also by the sacrificial nature of the coating. Ultimate service life depends on coating thickness and the severity of the environment.

Excellent Surface Appearance

Hot Dip Galvanized Steel is available as EXTRASMOOTH or ULTRASMOOTH for the most demanding surface critical applications.

Formability

Hot Dip Galvanized Steel can be used to produce parts containing simple bends to parts with deep drawing requirements.

Paintability

Hot Dip Galvanized Steel is readily paintable provided proper pre-treatment is performed.

f you are looking for importing Hot Dip Galvanized Steel (GI) from Vietnam, please contact us at:

Mr. Van Loc
Export Dept – Global market

—————————————————————
Email: locvht@namkimgroup.vn
Tel/whatsapp/line: +84 938 162 934
NAM KIM STEEL VIETNAM
Road N1, An Thanh Production Area, Thuan An District,
Binh Duong Province, Vietnam.
www.namkimgroup.vn

55% Aluminium-Zinc Alloy Coated Steel (GL)

1.Properties

55% Aluminium-Zinc Alloy Coated Steel (GL) is a flat carbon steel product coated on both sides with an aluminium-zinc alloy. The coating is composed of 55% aluminium, 43.4% zinc and 1.6% silicon and applied by means of a continuous hot dip galvanising process. 55% Aluminium-Zinc Alloy Coated Steel is available in a wide range of steel grades: steels for cold forming and deep drawing applications, and structural steels.

2.Advantages

The excellent corrosion resistance of 55% Aluminium-Zinc Alloy Coated Steel is a result of the properties of its two metallic constituents: the barrier effect of the aluminium present on the surface of the coating and the sacrificial protection of zinc.

The characteristic spangled silver colour of 55% Aluminium-Zinc Alloy Coated Steel gives it a very attractive appearance. Thanks to a thin transparent layer of aluminium oxide on the top surface of the coating, this appearance is preserved over time.

55% Aluminium-Zinc Alloy Coated Steel offers additional advantages:
– Good corrosion resistance at high temperatures
– Good abrasion resistance because of its surface hardness
– Excellent thermal and light reflectivity

3.Applications

55% Aluminium-Zinc Alloy Coated Steel coated steels are used widely in both indoor and outdoor applications:
– Construction: roofing, cladding, structural sections, composite panels, tiles etc
– Domestic appliances: washing machines, tumble dryers, refrigerators, toasters, microwave ovens etc
– Miscellaneous: boiler casings, air ducts, electrical cabinets, lighting, computer casings etc

55% Aluminium-Zinc Alloy Coated Steel can be supplied oiled and/or with a chemical surface treatment, or with an thin organic coating.

55% Aluminium-Zinc Alloy Coated Steel Florelis is a product with improved uniformity, with the result that there is no visible difference between the sheets. It is specially designed for facades of buildings with the highest aesthetic requirements.

4.Recommendations for use

Storage

55% Aluminium-Zinc Alloy Coated Steel is supplied passivated or oiled to temporarily limit any risk of black rust formation. During transport and storage, all necessary precautions must be taken to keep the material dry and to prevent the formation of condensation. Improved protection can be obtained by the application of an coating.

Forming and joining

The forming and joining techniques currently used for uncoated steel sheets are also suitable for 55% Aluminium-Zinc Alloy Coated Steel.
The coating thickness must therefore be compatible with both the desired degree of corrosion protection and the requirements of the forming and welding processes envisaged. Forming performance is improved if 55% Aluminium-Zinc Alloy Coated Steel is coated with an thin organic coating.

Painting

55% Aluminium-Zinc Alloy Coated Steel can be painted after degreasing and surface treatment when delivered oiled. 55% Aluminium-Zinc Alloy Coated Steel coated with an thin organic coating can be painted directly, without any prior surface treatment. However, the paint must be compatible with the resin.

 

If you are looking for importing 55% Aluminium-Zinc Alloy Coated Steel (GL) from Vietnam, please contact us at:

Mr. Van Loc
Export Dept – Global market

—————————————————————
Email: locvht@namkimgroup.vn
Tel/whatsapp/line: +84 938 162 934
NAM KIM STEEL VIETNAM
Road N1, An Thanh Production Area, Thuan An District,
Binh Duong Province, Vietnam.
www.namkimgroup.vn