Due to the sharply fall in oil prices, which led to Mexico oil projects continues to reduce. The unfair competition of import products, also leading Mexico’s seamless steel pipe production has decreased by 31.6%.

During the first eleven months of last year, Mexico produced 667,300 tons of seamless steel pipe, compared to the same period of 975400 tons in 2014.

Mexico Tubacero, one of the major manufacturers in Mexico has produced just over 40% of capacity, the company had expected output to grow by 15~20%. However, the increasing imports from China and Korea, will affect the company's production continues to fall further.