The steel trade balance in Mexico grew in the last 10 years by 150 percent, according to a report issued this week from the National Chamber of the Iron and Steel Industry (CANACERO.
Foreign trade of steel has a deficit, according to the report, rising from 1.79 million metric tons in 2004 to a deficit of 4.48 million mt in 2013, exacerbated by trade liberalization and tariff reduction.
The steel industry is open to international trade with over 100 countries but has a low level of import tariffs, virtually 0 percent, said the document. "Mexico has countervailing duties on various products, but 72 percent less than the US and 55 percent lower than the European Union. With the increase of imports , the gap between the level of exports and imports expanded in 2006 and from 2010 to 2013."
In the last five years, steel exports reflected a weak recovery but are growing at a slower rate than imports.
In the last decade, the average steel export total was 5.57 million mt, with an annual average growth of 3.4 percent from 2004-2013, from 5.6 to 6.0 million mt. In the same period, the export of rolled products grew 2.73 percent on an annual average. However, the demand for long products remained at around 16.66 million mt.