Steel Mills
Senators Threaten Re-imposing S232 Duties on Mexican Steel
February 21, 2023
Thirteen US senators from both major political parties wrote to top trade officials last week requesting that Section 232 tariffs be reinstated on some Mexican steel products, notably steel conduit.
“In recent months, it has become clear that Mexican steel imports ‘now exceed historic volumes of trade’ and are ‘surg[ing] meaningfully” into our market,” the senators wrote to US Trade Representative (USTR) Katherine Tai and Commerce Secretary Gina Raimondo on Feb. 14.
The US lifted 25% Section 232 duties on Mexican steel imports in May 2019 ahead of the negotiation of the US-Mexico-Canada Agreement (USMCA) going into effect in 2020. But terms of the deal provide a mechanism to prevent “surges” in steel imports. If surges in imports of specific steel and aluminum products occur, the US may reimpose Section 232 tariffs on those products, the senators said.
The senators’ letter targeted imports of Mexican conduit. “Since the US lifted Section 232 tariffs, Mexican steel conduit imports have reached unprecedented levels and Mexico’s penetration of the US conduit market has more than tripled, while demand from US consumers has fallen,” the letter said.
The letter references the loss of 200 jobs in California and the closing of a steel conduit plant there as a result of “unfair” Mexican imports. This refers to a Zekelman Industries plant in Long Beach, Calif., shuttered last October.
In response, Mexican steel industry association Canacero wrote a letter Sunday disputing the senators’ claims. The letter, written in Spanish, states that the Mexican steel industry rejects the “protectionist claims” of the US senators who suggest reimposing Section 232 tariffs.
The group called on Mexican authorities to execute an “objective” analysis of the situation and of the benefits of intraregional trade. The Canacero letter also noted that “protectionist tendencies” will probably be more pronounced in the US as 2024 elections approach.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Mills
SDI presses on with steel, aluminum investments
Steel Dynamics Inc. remains optimistic about its prospects as it ramps up flat-rolled steel operations and prepares for the production of aluminum products next year. Executives from the Fort Wayne, Ind.-based steelmaker provided an update on the company’s operations on a conference call on Thursday held to discuss SDI’s third-quarter earnings results.
CMC earnings slide, but still near top mark
CMC Fourth quarter ended Aug. 31 2024 2023 Change Net sales $1,996.1 $2,209.2 -9.6% Net income (loss) $103.9 $184.2 -43.6% Per diluted share $0.90 $1.56 -42.3% Full year ended Aug. 31 Net sales $7,925.9 $8,799.5 -9.9% Net income (loss) $485.5 $859.7 -43.5% Per diluted share $4.14 $7.25 -42.9% (in millions of dollars except per share) […]
SDI posts lower Q3 profit, sees better times in ’25
Steel Dynamics Inc. (SDI) reported a drop in third-quarter profits driven largely by lower flat-rolled steel prices. The Fort Wayne, Ind.-based electric arc furnace (EAF) steelmaker also saw scrap prices slip. That happened because of softer demand from domestic mills taking planned maintenance outages.
Cliffs hosts fireside chat on industry, union, government collaboration
Cleveland-Cliffs’s Chairman, President, and CEO Lourenco Goncalves hosted a fireside chat with US Trade Representative Katherine Tai and Acting Secretary of Labor Julie Su on Friday at the company’s plate mill in Coatesville, Pa.
Nippon agrees to sell Calvert stake, if USS deal closes
ArcelorMittal is set to take full ownership of AM/NS Calvert if Nippon Steel finalizes its pending acquisition of U.S. Steel.