Mexican steel service center Grupo Collado is concerned about potential new import duties or laws that may be implemented by the Biden administration in the US.
The company is still gauging the impact of the new United States-Mexico-Canada Agreement (USMCA) on its trade, as believes there is no certainty about how sanctions and the possible increase in tariffs would be applied under this agreement, it noted in its earnings report this week.
Collado’s net sales fell by 6pc to MXN7.78bn ($373.5mn) in 2020, from MXN8.28bn in 2019, on lower demand of steel products from manufacturing and construction industries due to the effects of the COVID-19 pandemic. The company did not disclose the steel volumes sold during this period.
The firm, which has 14 steel service centers across the country, increased its net sales by 13.7pc to MXN2.08bn in Q4 2020 from MXN1.83bn in Q4 2019.
The company’s gross profit rose by 12.1pc to MXN1.77bn in 2020, from MXN1.58bn in 2019, and climbed in Q4 2020 by 45.6pc to MXN430mn, from MXN295.4mn in the same prior-year quarter.
Mexico’s steel exports to the US fell by 1.6pc to 331,229mt in January, from 336,840mt shipped in the same month of 2019, according to the US Census Bureau data.
Mexican crude steel production decreased by 8.3pc to 16.8mn mt in 2020, from 18.3mn mt produced in 2019, according to the latest figures released by the World Steel Association.