Mexico
April 21, 2024
Written by Lewis Leibowitz
Last week gave us a glimpse into the effect of the 2024 election campaign on trade policy. In a major announcement, the Biden administration pressed the US Trade Representative (USTR) to triple certain Section 301 tariffs on steel and aluminum.
It’s a lot to unpack. You can find the full text of the announcement here.
The leading bidder for bankrupt Mexican steelmaker Altos Hornos de Mexico (AHMSA) failed to provide the required earnest money guarantee to confirm its $1.4 billion bid for the steelmaker and its Minera del Norte (MINOSA) mining assets. The court will now consider selling the assets to a consortium of creditors. After the bankruptcy auction on Sept. 25, the court overseeing the proceedings granted the leading bidder, Construcciones e Ingenierías Electromecánicas SA de CV (CIESA), ten days to provide a bid bond of $56.3 million. The Oct. 13 deadline passed without any prequalified bidders, including CIESA, providing the required amount. In fact, the court said CIESA deposited only 5,000 Mexican pesos (US$271).
Steel imports into the US crept higher in August and continued climbing in September, according to the Department of Commerce's latest import license data. August imports rose 3.4% from July to a 15-month high. September license data collected through Oct. 5 shows another 6.2% month-on-month increase. Imports continue to recover from some of the lowest levels since 2020, seen late last year through February this year.
Members of the Global Forum on Steel Excess Capacity (GFSEC) met in Wisconsin last week and unveiled an updated plan to combat market-distorting excess capacity. The Milwaukee Framework adds color to the 2017 “Berlin Principles.” It is also a positive step in the ongoing battle against global steel market distortions. However, the Framework is only a guidepost. It must be implemented correctly to make an impact as new problems loom.
The result comes after Mexico’s Ministry of Economy completed a five-year sunset review of the anti-dumping duty (AD) order on imports of hot-rolled (HR) sheet from Russia and Ukraine.
Mexico's Construcciones e Ingenierías Electromecánicas SA de CV (CIESA) has emerged as the leading bidder for the assets of bankrupt steelmaker Altos Hornos de México (AHMSA) and its mining subsidiary Minera del Norte (MINOSA). The Michoacán-based engineering and construction company offered $1.4 billion in a court-supervised bankruptcy auction held Sept. 25.