Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The Mexican government will continue its agreement with South Korean steelmaker Posco, allowing the latter to export a certain volume of cold-rolled coil (CRC) at fair prices to Mexico.


Under the deal, Posco has voluntarily committed to export 547,500mt of CRC in 2019, 573,906mt in 2020, 596,508mt in 2021, 620,044 in 2022, and 661,586mt in 2023, Mexico’s Economy Ministry said in a resolution published in the country’s official gazette (Dof) on Nov 5.


This measure will help to guarantee fair conditions of competition for local CRC production without imposing countervailing duties, the notice indicated. The products affected are classified under tariffs 7209.16.01, 7209.17.01, 7225.50.02, 7225.50.03, 7225.50.04, and 7225.50.99.


The probe on Posco was opened in October 2012, following a request from Mexican steelmakers Ternium México and Altos Hornos de México (Ahmsa).


Between 2019 and 2023 the consumption of CRC will decrease by 2.7pc, the Dof said, citing The National Steel Association (Canacero) data, without disclosing volume. However, it noted that CRC consumption may increase over the next few years due to higher demand owing to the new United States-Mexico-Canada Agreement (USMCA) trade deal.


Mexico saw a reduction in its crude steel output by 3.9pc to 1.40mn mt in September this year, from 1.45mn mt produced in the same month of 2019, according to the latest figures released by the World Steel Association.


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