The Mexican government has officially initiated an investigation on imports of steel wire rod originating in China, Kallanish learns from the Mexican economy ministry (MOE). The process follows the complaint lodged in July 2015 by steelmakers ArcelorMittal, Deacero and Ternium.

According to the three manufacturers, between April 2014 and March 2015, imports of wire rod from China increased by 281%. This happened while import prices were -12% lower compared to the domestic products and -44% lower compared the prices of imported products from other countries.

In the period investigated by the MOE, domestic wire rod prices fell by -15%, while the price of imported products from other countries increased by 5%. Domestic consumption meanwhile increased by 6%, while sales in the national market fell by -4%.

The complainants said that the market share of Chinese wire rod, which between April 2012 and March 2013 represented 1% of national consumption, reached 5% of Mexican demand between April 2014 and March 2015. 

The increase “… was associated with a -4% loss in the national producers’ market share … which fell from 96% recorded between 2012 and 2013, to 92% recorded between 2014 and 2015,” the MOE confirms.

Domestic producers, importers, exporters and any person with a legal interest in the outcome of the procedure will have a period of 23 working days to provide information for the investigation.