During CANACERO’s general assembly Wednesday, outgoing president Alonso Ancira said that the steel industry worldwide is undergoing the most complex crisis in the last quarter century, particularly serious for Mexican mills, which have zero tariffs against outside steel sources.
He noted that the Mexican steel industry has great potential for growth, with capacity to generate millions of additional tons of steel and the consequent creation of tens of thousands of jobs that urge to the country, making it imperative to avoid illegal behavior that damages the domestic market.
In that sense, he acknowledged that the current Federal Government needs to ensure equal competition and punish illegal behavior. Given the rapid change in the global economy, action is needed to eliminate unfair trade and strengthen industrial capacity.
Otherwise, Ancira warned, it runs the risk of canceling investments of over US$15 billion.
Incoming CANACERO president Guillermo Vogel added that large surpluses of steel in China and other Asian countries represent the greatest threat to the Mexican steel industry.
He said that the sector faces a very uncertain situation, because while steel production in Mexico grew 4 percent in 2014, imports grew by 12 percent.