AHMSA, Minera Autlan diverge on benefits of increased tariffs for steel imports

Friday, 02 October 2015 00:23:26 (GMT+3)   |  
       

Mexican steel and ferroalloy producers are still wondering whether a recent hike in the imports tariff of certain products will have a positive effect in the nation’s domestic steel industry.

As Mexico announced a 15 percent tariff for imports of slab, CRC, HRC, heavy plate and wire rod this week, producers are diverging on the benefits of such a measure.

Local steelmaker AHMSA said the move is “insufficient” as it doesn’t complement other related measures announced by the nation’s economy secretariat, SE.

“This is a real problem, which needs to be revised every day. If the weakening of [steel] prices due to China’s overcapacity continues, then the damages to the industry could increase further,” AHMSA’s president, Alonso Ancira, said in an industry event this week in Mexico City.

The AHMSA executive said the company still continues to hold its expansion as well as investment plans, and should continue doing so until better perspectives arise in the segment’s horizon.

“As the measure improves the domestic industry’s scenario, we’ll be reducing imports we used to do, and we’ll be boosting our growth,” Ancira said.

More optimistic, ferroalloys producer Minera Autlan said the announcement will bring the company “healthier” clients, in the sense they could help other parts of the metals chain value.

The company’s CEO, Jose Larrea, said lower steel sales by the country’s main producers will have a negative impact throughout the sector’s productive chain. “Despite not holding our investment plans, they’re moving slowly, and this impacts our growth,” Larrea said.

The local steel chamber, CANACERO, said the move could gradually diminish steel imports to up to 1 million mt in the next few months, despite domestic production still being expected to reach between 19 and 19.5 million mt in 2015.