Mexico expands import quota on sheet steel from South Korea
The Mexican government has decided to gradually expand its import quota on cold-rolled sheet steel from South Korea to help local plants to stabilize their business.
According to a press release from The Korea Iron & Steel Association, the Mexican government made a preliminary decision on recent days to increase its import quota regarding cold-rolled steel sheets imported from South Korea by 40,000 tons in 2017 and by 60,000 tons in 2018.
This measure is expected to contribute to stabilize operations of South Korean manufacturing facilities in Mexico such as POSCO Mexico, Hyundai Motor Company and Kia Motors, since most of South Korea’s cold-rolled steel sheet exports to Mexico are used by those companies.
According to the association, South Korea’s cold-rolled steel sheet exports to Mexico are estimated to increase from 530,000 tons to 565,500 tons between this year and next year and then to 590,000 tons in 2018 once the preliminary decision is fixed.
The value of the exports is estimated to increase by US$ 22 million and US$ 30 million as well, respectively.
South Korean steelmakers are planning to work closely with the South Korean government so that the amount of additional imports can be further increased before the final determination scheduled for July next year.
The Mexican government launched an anti-dumping investigation on the item in July 2012 and stopped the investigation in December 2013 by putting a limit on five-year imports instead of imposing an anti-dumping tariff.