Mexico imposes duties on steel pipes

Mexico has imposed temporary import duties on welded carbon steel pipes sourced from the United States, Spain and India. The new measures, announced by the Ministry of Economy in an official statement, indicate that Mexico is stepping up measures to protect the domestic steel industry, which is struggling to survive due to a glut of imports that have lowered prices for steel products. Mexican metallurgical enterprises in these conditions were forced to resort to massive layoffs.

Earlier this month, the Ministry of Economy added 86 additional steel products to the list of "sensitive goods", marking them for more thorough checks, as well as strengthening customs controls to prevent quota evasion. The ministry said it had approved 31 anti-dumping quotas, with nearly half of them for Chinese-made steel products.

In June, Mexico imposed temporary tariffs on imports of hot rolled steel from China, Germany and France amid an anti-dumping investigation. Later in June, the government of that country announced the introduction of import duties on cold-rolled steel sheet from China. Responsibilities were set at 66 percent for Baoshan's steel imports, 82.1 percent for Tangshan and 103 percent for all other Chinese companies.

Altos Hornos de Mexico, one of Mexico's largest steel producers, said it would cut its workforce by 20 percent, deciding to suspend investments and cut production after the country saw a collapse in steel prices. Mexican steelmakers say they will be forced to resort to further cuts in production and jobs if the government does not impose tariffs on steel imports next month. They believe that Mexico's anti-dumping procedures are too slow and outdated, given the scale of imports, mostly Chinese. Imports to the country have been steadily growing this year compared to last year, according to the regional association Alacero.