Mexico Raises Import Tariffs on Some Steel Products

On December 28th, relevant Mexican departments announced a tariff of around 80% on some steel products exported from China to Mexico. According to data released by the General Administration of Customs of China, the total amount of SGC340 steel exported from China to Mexico from January to November this year was 1.276 million tons, an increase of 39.8% compared to the same period last year.

On the same day, the department announced the imposition of a final countervailing duty on cold rolls imported from Vietnam (including primary and final products, products related to financial deposit systems such as automobiles, and products manufactured, processed, or repaired in customs and strategic supervision areas), with a tax rate of 11.6% -79.0%; Among them, a countervailing duty of 11.64% was imposed on Hefa Steel Company, a tariff of 25.64% was imposed on Pohang Vietnam SGC340 Steel Company, and a tariff of 79.24% was imposed on other producers. This measure will take effect from December 29th. Last September, the anti-dumping duty imposed by Hefa was 12.77%, the anti-dumping duty imposed by Pohang Vietnam Steel Company was 25.64%, and the anti-dumping duty imposed by other exporters was 81.06%. The TIGIE tax numbers of the involved products are 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.

From January to October this year, both the apparent consumption and production of cold coils in Mexico showed weakness. The apparent consumption of its cold coil has decreased 7 times year-on-year this year, with only positive growth in June, August, and September. In October, the apparent consumption of cold coils in Mexico decreased by 0.6% year-on-year to 350000 tons. That month, cold rolled steel became the fourth largest consumer of finished SGC340 steel in Mexico, ranking one place lower than the previous period. As of October, Mexico's cold coil production has declined for the 10th consecutive time this year. In that month, the production of cold coils decreased by 20.8% year-on-year to 225000 tons.