After being re-elected president of the National Chamber of Iron and Steel Industry, Mr Alonso Ancira Elizondo CEO of Altos Hornos de Mexico said that the steel industry and the Mexican government can no longer ignore phenomena like the economic tsunami that generated the crisis in Europe and slower growth in Asia, which resulted in illegal trading activities that are affecting the country's industry.
Mr Elizondo said that the steel industry will struggle with authorities and legislators for the modernization of trade rules so that Mexico has adequate tools to participate in the global economy. Immediate measures would include increasing the strength, flexibility and agility of the International Trade Practices Unit of the Ministry of Economy.
He said that "We are participating in a new economic game with ‘Napoleonic rules' of the past and we have no defense instruments to combat a global oversupply of steel by 320 million tonne, equivalent to twice the annual output of all the Americas. Some countries seek more stable economies, such as Mexico."
He added that the lack of response to this issue and open borders have left the domestic steel industry at the mercy of unfair competition, noting that imports from countries without trade agreements rose 170% in 2012, while domestic production decreased 2% and prices fell by about 30%, without benefit to end users.
In the specific case of the domestic steel industry, unfair competition and subsequent market instability threaten the national investment program of more than USD 11 billion over the next 4 years, which aims to strengthen industrial chains that are important generators of employment, such as automotive, metalworking and oil.
