Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) said this week it will suspend a $200 million investment it had planned for 2019. The company did not release further details about the proposed investment.
The company said it is also mulling other “adjustments,” which may include the layoff of thousands of workers, due to deteriorating prospects for the local steel sector. AHMSA said the lack of a steel import tariff for China and other countries Mexico does not have trade agreements with will lead the local steel sector into a crisis.
Additionally, the imposition by the US of a 25 percent import tariff over steel products under Section 232 has further deteriorated prospects for the Mexican steel sector, AHMSA said.
Ancira Alonzo, president of the AHMSA board, urged the Mexican government to renew a 15 percent import tariff over certain steel products, including slab, CRC, HRC, heavy plate and wire rod, which expired on January 31.