Mexico is reviewing the commitments assumed by the South Korean steelmaker Posco over its cold-rolled steel imports in the country. So says the Mexican Secretary of Economy (SE) in a document published in the Official Gazette on 14 May, monitored by Kallanish. The review was requested as a result of a change in circumstances under the commitment being assumed, the SE says.
Posco argues that it expects growth in the Mexican automotive sector between 2019 and 2023 and thus that the demand for galvanized steel will improve. “This outlook is supported by the latest reports by the local automotive association, Amia, and the national steel chamber, Canacero, and makes it necessary to review Posco`s [… CRC] export volumes to the Mexican market during the said period,” the steelmaker says. The expansion projects at both Posco Mexico and Posco MPPC, as well as the direct sales to customers are also relevant reasons for the review to be carried out, the company notes.
Based on the foregoing, Posco proposes an increase in its import quotas over the next 5 years. The would be 547,500 tonnes of cold-rolled steel in 2019, 585,000t in 2020, 606,000t in 2021, as well as 633,000t and 677,000t in 2022 and 2023, respectively.
Over the 2014-2018 period, Posco`s annual import quota for CRC ranged between 400,000-545,000t.
Mexico had initiated an official anti-dumping investigation on South Korean CRC imports and imposed countervailing duties of 6.45% on such imports from Hyundai Hysco and 60.40% from Posco in June 2013. Both the investigation and the measures were removed in December 2013 after the companies agreed to export CRC into Mexico on quota basis.
The imported products being monitored are classified under HS codes 7209.16.01, 7209.17.01, 7209.18.01, 7225.50.02, 7225.50.03, 7225.50.04 and 7225.50.99.