Mexican domestic hot rolled coil (HRC) prices dipped slightly in the last week, by about US$2-$4/mt, settling at the level of US$728/mt ex-mill.
According to local producers, last year they faced two adverse conditions that impacted product flows: a drop by about 30 percent in steel prices and unfair competition from imports from China and other countries in Asia and Eastern Europe.
Between 2011 and 2012, imports of plate, HRC, CRC, tin, chrome plate and structural sections almost tripled. For the most part, these products came from countries such as China, India, Russia, Ukraine and South Korea--countries with which Mexico has no trade agreements.
In response, as a strategic advantage, Altos Hornos de Mexico (AHMSA) supports continued progress in quality and ownership of the iron and coal mines. Secondly, the Phoenix Project will achieve an annual installed capacity of about 5 million metric tons of liquid steel, with greater diversity of products, more precise specifications and dimensions that are currently imported for the automotive industry.