Even with the recent expansion of steel production capacity in Mexico, the country will continue to import steel, requiring at least 4 million tons of imports in the next seven years, said Sachin Shivaram, Commercial Vice President Severstal, in a conference last week.
He noted that the automotive industry will continue to import at least 1.5 million tons per year by the lack of capacity and quality, while the household appliances sector will import 2.5 million tons of steel a year.
Currently, 40 percent of Mexican domestic steel consumption comes from imports and will continue at that level until at least 2023, said Shivaram.
"Imported flat steel will fill an important gap in the Mexican market and cannot be avoided—such imports also help to create a competitive environment and many will benefit from that," he said.
Shivaram said that most of the steel imports come from the United States and its major trading partner should be viewed as a single market.