Mexico extends duties on CRC imports from Russia and Kazakhstan

The Mexican Ministry of Economy announced an extension of countervailing duties applied to imports of cold rolled steel coils (CRCs) from Russia and Kazakhstan. Countervailing duties on cold rolled steel imported from Russia and Kazakhstan will remain in effect until June 30, 2020. The decision was made on the basis of a recent investigation by the Mexican authorities.

A report from the Ministry of Economy states that quotas will remain at 15 percent for cold rolled coils imported from Russia and 22 percent for CRC products imported from Kazakhstan. In this regard, there were no changes to the quotas identified in the 2010 report.

A petition for an extension of countervailing duties was filed by the local producers Ternium and Altos Hornos de Mexico (AHMSA). Ternium is the largest steel company in Latin America with a high degree of integration in steel and high value-added products, but the Mexico plant suffers from fierce competition, as well as the national leader in hot and cold rolled steel, sheet metal and chrome plates, AHMSA.

As a result, detailed studies were carried out on the import of cold rolled steel coils into the country from January 1, 2009 to December 31, 2013. The renewal of duties will apply to cold-rolled steel sheets with a width equal to or greater than 600 mm and a thickness equal to or greater than 0.5 mm, but not exceeding 3 mm, under codes 7209.16.01 and 7209.17.01.

Mexico first applied countervailing duties on CRC imports in June 1999, after which the decision was extended for another five years in December 2005, followed by another expansion in December 2010.