Due to China's export potential to Mexico regarding the production of steel wire and the dynamics of the two markets, Mexico's Ministry of Economy (SE) has launched an investigation into the potential impact of unfair trade practices in relation to imports of steel wire from China.
The federal agency has determined that there is sufficient evidence to allege that Chinese steel exports have been made under conditions of dumping, causing a threat of injury to the domestic industry.
Through the Official Gazette (DOF), the SE stated that local steel producer Deacero requested the administrative inquiry, alleging unfair trade practices in the form of price discrimination.
Part of the evidence presented is the production capacity of all exporting producers in China, estimated at more than 1.355 million tons, while their capacity utilization was 63 percent, which means underutilized capacity was 500,000 tons.
The SE predicted that low price levels of steel wires produced in China and recorded during the period under review allow it to forecast the increase in imports from that country in the near future.
The antidumping investigation will continue its process, and so the SE has not yet determined the level of provisional dumping duties on imports of these products.