Shortly before Christmas, the European Commission announced the launch of an anti-dumping investigation (2020/C 442/06) against certain steel fasteners imported from the People’s Republic of China.
The products under investigation are currently classified as CN codes 7318 12 90, 7318 14 91, 7318 14 99, 7318 15 58, 7318 15 68, 7318 15 82, 7318 15 88, ex 7318 15 95 (TARIC codes 7 19 and 7318 15 15 95 89), ex 7318 21 00 (Taric Codes 7318 21 00 31, 7318210039,7318210095and and7318210098) and ex 7318 22 00 (Taric Codes 7318 22 00 31, 7318 22 00 39, 7318 22, 7318 222.7318 222, 222, 7318, 7318, 7318, 7318, 7318, 7318, 7318 222.7318 222, 222 7318 22 22 7318 22 22 7318 22 22 7318 22 22 7318 22 222 7318 22 222 7318 22 222 7318 22 22 222 7318 22 22 22 22 018 2).
Fastener + Fixing Magazine invited the European Fastener Distributors Association (EFDA), representing importers and suppliers of industrial fasteners throughout Europe, and the European Industrial Fastener Institute (EIFI), the recognized European trade association for manufacturers of washers, nuts, bolts, screws, rivets and other fasteners for mechanical engineering – Submit an article reflecting the views of its members on the survey.
EIFI declined the offer and did not comment on the investigation. However, EFDA provides the following articles:
On December 21, 2020, the European Commission issued a “Notice on the imposition of anti-dumping procedures on imports of certain steel fasteners manufactured in the People’s Republic of China”. An 85 percent anti-dumping duty in 2009 would look very familiar. This process is well remembered by all participants: in February 2016, the WTO abruptly removed tariffs after China filed a lawsuit and ruled that EU measures violated WTO law.
From the EFDA’s point of view, the most striking issue in the European Fastener Industry’s (EIFI) complaint is that much of the damage done to EU fastener manufacturers in recent years has been caused by developments outside of China. Starting in 2019 at the latest, their order situation began to deteriorate due to lower demand for fasteners from important customer industries, especially the weak automotive industry. The production capacity accumulated in the industry over the past few years cannot be used, and some companies even go bankrupt, and some companies can still continue to operate with sufficient profitability.
With an investigation period from 1 July 2019 to 30 June 2020 and a period relating to the consideration of any damage to EU industry from 1 January 2017 until the completion of an investigation to be determined by the Commission, Covid-19 Impact Pandemic in the industry of EU fasteners will add a whole new quality to the detrimental factors judging the current economic situation of EU manufacturers.
EFDA is deeply concerned that anti-dumping measures could disrupt European supply chains at a critical time when the industry needs to focus on recovering from the Covid-19 crisis to protect jobs and remain globally competitive. The coronavirus pandemic has impacted European supply chains, especially in recent weeks as a global shortage of shipping containers has caused significant delays in bringing products to European markets. Even the mere announcement of an anti-dumping investigation can have an immediate negative impact on the supply chain. Importers must now weigh whether they can import goods before tariffs, buy them back in an already tight supply market, and explain to buyers that, in addition to significant inflationary pressure on freight and raw material costs, they will face further increases.
Playing an integral role at the center of the supply chain, European fastener distributors truly bridge industry and construction in a Europe that is by no means a small industry. Mainly small and medium-sized distributors, supplying more than 130,000 different fasteners and fasteners, owning stocks of more than 2 billion euros, employing more than 44,000 employees, total annual turnover of more than 10 billion euros.
However, these numbers are even more multiplied when it comes to users of imported fasteners. Important European industries such as automotive, construction, furniture, light and heavy machinery, renewable energy, DIY and crafts are completely dependent on global fastener supply chains managed and coordinated by importers, wholesalers and distributors. If the Commission decides to impose anti-dumping duties, these and many other industries will suffer from higher fastener prices, as European fastener traders will have to pass on the higher cost of imported fasteners to their customers.
Rising fastener prices are not the only negative impact of anti-dumping duties on imports of fasteners from China on the global competitiveness and efficiency of the EU industry. Tariffs will jeopardize supplies from the EU as most of the fasteners come from China and other countries lack the capacity to do so. For certain product groups not available elsewhere in Asia or Europe, China will remain the sole source of supply. Anti-dumping duties will have the direct effect of raising prices. Due to limited production capacity in Asian countries, it is only possible to move to other Asian countries at higher prices. In countries like Taiwan and Vietnam, they are limited anyway due to increased demand in the US, a direct consequence of the Trump administration’s failed protectionist trade policies. In response to US protective tariffs on Chinese fasteners, US companies have to source from other Asian countries.
Finally, European fastener distributors see no reason to expect European manufacturers to replace the vanishing Chinese market with domestic products, as standard parts are not made in Europe. The products covered by the CN codes covered include standard parts and special parts. For a long time, European fastener manufacturing has focused primarily on high value-added, custom made products rather than standard fasteners, and has been focused either on specific large scale, narrow range consumer industries or low volume, fast reactive production niches. Standard fasteners imported from Asia for industry and public consumption are not produced in Europe at all. This will not change over time as trade defense measures cannot simply “turn back the clock”. History has proven that anti-dumping duties on imports of fasteners do not affect the EU production base. This became evident when, in 2009, anti-dumping duties were imposed on imports of fasteners from China with an unreasonably high level of tariffs of 85%, which led to the complete cessation of imports of fasteners from the country. However, instead of investing in the production of lower value standard products, European manufacturers have focused and invested in the production of higher value added components. As imports from China were blocked, demand shifted to other key Asian sources. Hardly any company – be it a manufacturer, importer or consumer – benefited from the 2009-2016 tariffs, but many suffered significant negative impacts.
Fastener distributors across Europe are determined to prevent the same mistakes that the European Commission has made in the past with importing fasteners. EFDA expects the Commission to give due consideration to all parties – producers, importers and consumers. If so, then we will definitely get a good result in the process. EFDA and its partners have set very high standards for themselves.
Will joined Fastener + Fixing Magazine in 2007 and over the past 15 years has been exposed to every facet of the fastener industry – interviewing key industry figures and visiting leading companies and trade shows around the world.
Will manages content strategy across all platforms and is an advocate for the magazine’s renowned high editorial standards.
Post time: Dec-09-2022
