Mexico’s economy secretariat, SE, provisionally increased an existing CRC import quota deal signed with Posco and Hyundai Hysco in December 26, 2013.
As previously reported by SteelOrbis in May this year, the Mexican government was already reviewing the deal, but this week it decided to increase the amount of CRC Mexican companies could import from both Posco and Hyundai Hysco.
According to SE, the new CRC import volume quotas from Hyundai Hysco are now 35,000 mt in 2017 and 45,000 mt for 2018, up from 25,000 mt in 2017 and 30,000 mt in 2018.
As for Posco, the new limits are 530,000 mt in 2017 and 545,000 mt in 2018, up from 500,000 mt in 2017 and 500,000 mt in 2018.
As a result of SE’s decision, Mexico suspended investigations over the imports of CRC from the two producers, and at the same time declined to impose any countervailing duties (CVD).
Both companies agreed to export the product at non-injurious prices.
The new import volumes were changed following a request of Hyundai Steel on December 21, 2015, when it asked the Mexican government to review the quotas agreed by Hyundai Hysco, since a Hyundai-affiliated company, KIA Motors, decided to invest in Mexico and would then need to use a specific amount of CRC for automotive use.
Hyundai Steel said at the time since it is part of the Motor Group it could require the review of the deal.