The Mexican government has increased an existing CRC import quota deal with Posco and Hyundai Hysco Co, it said this week.
The deal sets limits for the amount of CRC the two companies can export to Mexico at non-injurious prices, as KIA Motors started up auto production last year at its Pesqueria plant in the state of Nuevo Leon and needs increasing volumes of the product, with certain specifications, which can’t be supplied by local producers.
The Mexican government has agreed to increase Hyundai Hysco Co’s CRC import quota to 35,000 mt in 2017 and 45,000 mt in 2018, from a previous quota of 25,000 mt in 2017 and 30,000 mt in 2018.
Posco’s quota was increased as well to 530,000 mt in 2017 and 545,000 mt in 2018, up from a previous quota of 500,000 mt in 2017 and 500,000 mt in 2018.
Hyundai Steel initially requested that the Mexican government review the quotas agreed by Hyundai Hysco in December 2015, since a Hyundai-affiliated company, KIA Motors, decided to invest in Mexico and would then need to use a specific amount of CRC for automotive use.
The decision to increase the existing CRC import deal quota followed a revision of the deal in May 2016, as previously reported by SteelOrbis.