In the first half of 2020, Central American imports of iron and steel sheets totaled $387 million, 13% less than what was reported in the same period of 2019, a drop that is explained by the decline in purchases in all markets in the region.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
During the first quarter of 2020, imports of iron and steel sheets in the countries of the region totaled $208 million, 7% less than what was reported for the same period in 2019, a fall that is explained by the decrease in purchases in Honduras, El Salvador and Costa Rica.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In response to the authorities' consultation on the request for a safeguard measure on the import of steel products, the builders are opposed on the grounds that this would make materials more expensive, in addition to making their production inefficient.
Arguing that there is no serious injury to the domestic production, the Ministry of Economy of Guatemala decided that it is not appropriate to impose the safeguard requested by a local company on the import of rolled products.
It was found that there is no Serious Injury to the total national production of "flat rolled products of other alloy steels, of a width greater or equal to 600 mm", which are classified in the tariff items 7225.91.00, 7225.92.00 and 7225.99.00 of the Central American Tariff System (SAC), according to official information.
During the first half of 2019, imports of iron and steel sheets in the countries of the region totaled $446 million, and purchases from companies in Mexico increased by 24% over the same period in 2018.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
Importers of rolled products in Guatemala demand objectivity in the investigation conducted by the Ministry of Economy to determine whether or not to apply a safeguard to the import of these products.
Derived from the request made by the company Ternium, for the Directorate of Foreign Trade Administration (DACE) to carry out an economic study of the import of rolled products in the country, which has as its main objective, to establish if appropriate a safeguard measure, companies such as Ferromax and Grupo Ferroso, SA, require that the results of the investigation are objective and respond to the real situation of the market.
At the request of Ternium, the Guatemalan Ministry of Economy conducts an import investigation to determine whether or not a safeguard can be applied, a measure opposed by the commercial sector.
In February 2018, the company Ternium submitted to the authorities a request for the Directorate of Foreign Trade Administration (DACE) to carry out an economic study of the import of rolled products into the country, which has as its main objective, to establish whether a safeguard measure is appropriate.
During the first quarter of 2019, imports of iron and steel sheets in the countries of the region totaled $224 million, 7% less than reported in the same period of 2018.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAPHIC caption="Click to interact with graphic"]
During the last year, imports of iron and steel sheets in the countries of the region totaled $941 million, 13% more than in 2017, a rise explained by purchases made from companies in China.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In the first nine months of 2018, purchases of iron and steel sheets in the countries of the region totaled $718 million, 9% more than in the same period in 2017.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"]
In Costa Rica, the government's decision to reject ArcelorMittal's request to raise the import tax on steel rods generated such a conflict that the company assured that "it has no incentive to keep its production in the country."
After concluding its investigation, the Ministry of Economy, Industry and Commerce (MEIC) decided to reject the request of the manufacturer ArcelorMittal to apply a safeguard measure on imports of alloy and non-alloy steel rods.
In the first half of the year, iron and steel sheet purchases in the countries of the region totaled $525 million, 2% more than imports in the same period in 2017.
Figures from the information system on the Iron and Steel Sheet Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Arguing that dumping practices exist by China and are not competing on an equal basis, businessmen from the sector in Guatemala request the intervention of the authorities.
Through a statement from the Chamber of Industry of Guatemala (CIG), explained that in recent years, China, through its improper business practices including dumping and subsidized prices, has affected local production.
In Costa Rica, importing companies are against the ArcelorMittal proposal, which consists of raising the steel rod income tax from 1% to 15%.
On November 5th, a public audience was held in which importing companies and ArcelorMittal presented their arguments before the Ministry of Economy, Industry and Commerce (MEIC) regarding the proposal to raise the import tariff on steel rod by 14%.
In the first quarter of 2018, imports of iron and steel sheets made by companies in the country totaled $35 million, 44% more than in the same period in 2017.
Figures from the information system on the Iron and Steel Sheet Market in Panama, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]