Due to the increase in exports of finished steel products from the United States, the Mexican industry of this product faces a “critical challenge,” said the National Chamber of the Iron and Steel Industry (Canacero) , who also warned that this sector of the northern neighbor is not complying with the joint declaration agreed by both countries.
“Between 2015 and 2023, bilateral trade in finished steel products has reflected an average annual surplus of 1.2 million tons in favor of the United States; however, in 2024 this surplus doubled, reaching unprecedented levels,” Canacero said in a statement.
According to annualized data through November, there was a 21% growth in U.S. exports to Mexico compared to the 2015-2017 base period; on the other hand, Mexican exports to the United States fell 2% , generating a surplus of 2.4 million tons and a value of more than four billion dollars (mdd) .
According to information from the Ministry of Economy , 27% of the steel that our northern neighbor exports to Mexico originates in Asian countries, with possible cases of triangulation from Malaysia.
“On the contrary, accusations that Mexico serves as a bridge from China for the triangulation of Asian steel to the United States are unfounded. Data from the United States Steel Import Monitoring and Analysis System (SIMA) indicate that between January and November 2024, exports of steel of Chinese origin from Mexico were only 580 tons, representing 0.02% of the total. Likewise, 85% of the steel exported by Mexico is melted and cast in the country,” he stressed.
Canacero explained that while Mexico has supported regionalization and integration under the United States-Mexico-Canada Agreement (T-MEC) , the Mexican steel industry is currently seen being displaced.
In this regard, he recalled that in 2024 the United States captured 15.9% of the Mexican market, while our country represented only 2.2% of the American market. In light of this, he indicated that Mexico has adopted measures to protect the region from unfair practices , including the application of tariffs of up to 50% for countries without trade agreements.
“In addition, it has implemented an automatic import notification system with certification of the producing mill, and has worked with the United States through the US Customs and Border Protection (CBP) on a steel traceability system to identify its origin and avoid triangulation attempts,” he said.
In this context, Canacero ratified its support for the position of the President of Mexico, Claudia Sheinbaum, to apply some measures to exported steel products from the northern neighbor sent to our country, in the face of possible trade reprisals.
Just last January 17, this same organization ruled out that steel exports from Mexico were a threat to the United States, and stated that it is unfounded that Mexican exports are generating the closure of plants or layoffs in the United States, as the steel industry in that country has mentioned on several occasions.
According to the National Institute of Statistics and Geography (Inegi) , in November 2024, Mexican mining and metallurgical production, which includes extraction, processing, smelting and refining activities of metallic and non-metallic minerals, stood at a level of 77.6 points , which meant a decrease of 0.9% at a monthly rate.
Comment and follow us on X: @GrupoT21
