Mexico Finalizes Anti-Dumping Duties on HRC from Hoa Phat and Formosa

Overview

Mexico has concluded its anti-dumping investigation into hot-rolled coil (HRC) imports from Vietnam and China, imposing definitive duties on major producers. Hoa Phat Dung Quat, a subsidiary of Hoa Phat Group (HOSE: HPG), faces a duty of $285.5 per ton, while Formosa Ha Tinh is subject to $271.9 per ton. The decision, published in Mexico’s Federal Official Gazette on September 3, follows a probe initiated in March 2025.

Key Facts

• Mexico’s final anti-dumping duty on Hoa Phat Dung Quat HRC is $285.5 per ton.
• Formosa Ha Tinh’s HRC faces a lower duty of $271.9 per ton.
• The investigation was initiated on March 3, 2025, following a petition by Ternium México filed on November 19, 2024.
• The dumping investigation period covered September 1, 2023, to August 31, 2024.
• Imports of HRC from Vietnam and China increased by 132% during the analysis period.
• The market share of Vietnamese and Chinese HRC in Mexico rose from 1.9% to 3.7%.
• Imported HRC prices were on average 15% lower than domestic products during the investigation period.

What Happened

Mexico’s Ministry of Economy has issued its final ruling in the anti-dumping case against hot-rolled coil imports from Vietnam and China. The decision, published in the Federal Official Gazette on September 3, sets individual duty rates for the two Vietnamese producers: $285.5 per ton for Hoa Phat Dung Quat and $271.9 per ton for Formosa Ha Tinh. Other Vietnamese exporters under investigation will face the same rate as Hoa Phat.

The case originated from a complaint filed by Ternium México in November 2024, alleging that HRC imports from Vietnam and China were sold at unfairly low prices. Mexico’s investigation found that these imports increased significantly, with volumes rising 132% over the analysis period, and that they undercut domestic prices by an average of 15%. The authorities concluded that the imports caused material injury to Mexico’s domestic HRC industry.

Market Context

Hoa Phat Group (HPG) is listed on the Ho Chi Minh Stock Exchange (HOSE). As of September 7, 2026, HPG shares closed at VND 22, down 0.23% on light volume of 18 million shares. The new duties could affect HPG’s export revenue, though Mexico is not among its largest markets. The Vietnamese steel sector has faced increasing trade barriers globally, including recent U.S. tariffs on other products. HPG’s diversified export portfolio and strong domestic demand may help offset any negative impact from the Mexican duties.

Strategic Significance

For long-term investors, the Mexican ruling underscores the rising protectionist environment for Vietnamese steel exports. HPG’s ability to navigate these barriers will be crucial. The company has been expanding its domestic capacity and exploring new markets, which could reduce reliance on any single destination. However, the duty rate of $285.5 per ton is substantial and could render exports to Mexico less competitive. HPG’s strategic focus on high-value products and cost efficiency will be key to maintaining profitability amid such trade frictions.

What to Watch

• HPG’s export volume to Mexico in the coming quarters to gauge the duty’s impact.
• Any company statements regarding market diversification or mitigation strategies.
• Q3 2026 earnings report for signs of margin pressure from trade barriers.
• Developments in other anti-dumping investigations involving Vietnamese steel, such as in the U.S. or EU.
• Changes in global HRC prices that could offset the duty’s effect on competitiveness.