The Ministry of Economy (SE) is not understanding the magnitude of the "tsunami that is affecting the world steel industry and especially Mexico," said Alonso Ancira Elizondo, Chairman of the Board of Altos Hornos de Mexico (AHMSA). Speaking to media this week, Elizondo said that if the agency does not adopt radical measures promptly to curb unfair imports, the company must apply a second adjustment plan for production staff.
If the SE will not act to halt the crisis, Elizondo said, “we will start importing cheap slab and that will mean we will close mines and furnaces and cut 4,000 direct Jobs.”
Mexico has just over 20 resolutions regarding “dumped” imported steel, while the United States has 99 and Europe has 85.
“Our legislation is late, slow, complex, limiting and when a resolution is successful the problem is old and the damage is done; it will take time to reform and update and that is what we have today,” he said.
He added that the terms permitted by the OECD to establish a temporary tariff for the entire steel chain are applicable only to countries without existing trade treaties, which would not affect production chains eligible for Eighth Rule for imports of its steel supplies.
“In precise terms, a temporary action of this kind would impact only 17 percent of imports, which are precisely those from countries that are having unfair trade practices,” he said.
He said the problem of unfair trade has spread to the industrial chain and, for example, has been detected in temporary imports of pipe, a finished product. “Although it seems a joke, the result is that Mexican pipe manufacturers have begun to close units and fire people.”
According to information collected so far, adjustments in the steel industry chain has generated the dismissal of 8,000 workers with direct impact, and about 40,000 indirect jobs from suppliers.