# Ternium Reports Sales Growth Amidst Chinese Steel Import Challenges in Mexico CEO Máximo Vedoya highlights tariff evasion tactics undermining local steel production growth in Mexico. - **Source:** [El Financiero](https://www.elfinanciero.com.mx) - **Published:** 2026-11-11 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/27469a79-7098-4e86-b1e6-03f1123d1ffc ## Sales Growth Driven by Tariffs Ternium experienced a 13 percent increase in Mexican steel shipments during the first nine months of 2026. CEO Máximo Vedoya attributed 70 to 80 percent of this growth to the substitution of imports following new government tariffs. These measures encourage local clients to source materials domestically rather than relying on foreign suppliers. ## Persistent Tariff Evasion Tactics Despite 35 percent tariffs on non-treaty steel, Chinese products continue entering Mexico through illicit channels. Vedoya identified sub-invoicing, direct smuggling, and routing shipments through third countries as primary methods used to bypass trade barriers. These practices significantly hinder the effectiveness of current protectionist policies intended to support the local steel industry. ## Government Policy and Market Context The administration of Claudia Sheinbaum implemented new tariffs in January 2026 to curb foreign steel influx. While these measures aim to protect domestic producers, the industry faces pressure from the United States to match higher 50 percent tariffs. Currently, Mexico imports approximately 400,000 metric tons of flat steel every single month. ## Infrastructure and Demand Recovery The Mexican steel market is showing signs of recovery after a 10.1 percent consumption decline in 2025. Vedoya highlighted emerging opportunities in infrastructure and construction projects. Specifically, solar energy initiatives led by the Comisión Federal de Electricidad and private partners are expected to drive significant demand for locally produced steel products. ## Strategic Capacity and Competition Ternium has invested in expanding its capacity to manufacture sophisticated steel grades. These efforts are designed to compete directly with imports from China, Japan, and South Korea. The company believes that with time, Mexico possesses the industrial capability to replace nearly all of the 400,000 metric tons currently imported each month. ## Regional Production and Trade Rules Vedoya advocates for stricter rules of origin within North America to bolster regional manufacturing. He suggests that while Chinese firms should be permitted to invest locally, they must avoid merely assembling finished goods with minimal regional content. This approach aims to ensure that value-added production remains firmly within the North American trade bloc. ## Impact of US Trade Barriers Mexican steel producers are simultaneously navigating trade hurdles in the United States. Exports to the US dropped 33 percent to 1.56 million metric tons in 2025 due to Section 232 tariffs. Vedoya noted that the Mexican government has presented mature proposals to resolve these disputes, though no specific timeline currently exists. ## Market Performance and Outlook Ternium shares listed in New York have risen 8.9 percent over the last six months, slightly outperforming the 8.2 percent gain seen by Brazilian rival Gerdau. As the company evaluates future market capture, the focus remains on enforcing existing tariffs to ensure a level playing field against ongoing illegal dumping practices. ## Sources covering this story - https://www.elfinanciero.com.mx/empresas/2026/11/11/ternium-advierte-china-esquiva-aranceles-de-mexico-con-contrabando-y-dumping/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._