7/27/2009
NEWS BRIEFS
Chinese Fastener Makers Worried About Possible U.S. Tariffs

Reeling from European Union tariffs, fastener makers in China are eyeing offshore production to circumvent the 85% duties, Chinese Enterprise News reports.

In addition to the EU tariffs, Chinese fastener producers are feeling pressure from companies in Russia that are calling for a tariff investigation as well.
Until the tariffs were enacted at the beginning of 2009, fastener exports to the EU consumed about one-third of fastener exports from China.

Chinese producers reportedly are worried that if Russia successful applies duties to Chinese fastener exports, U.S. distributors may feel emboldened to follow suit, according to Chinese Enterprise News.

“Once these vicious effects occur, Chinese fastener industry will be highly impacted since as much as 40% of Chinese fasteners are exported to America,” Chinese Enterprise News reports.

Some Chinese fastener companies, including Gem-Year Industrial Co., reportedly have turned their attention to the domestic Chinese market to reduce their dependence on export markets. Such actions include pursuing the domestic MRO market to make up for plummeting export sales.

Other Chinese companies are looking into setting up factories in Malaysia, Thailand and Cambodia to circumvent EU tariffs, Chinese Enterprise News reports.

The general EU tariff for a range of imported fasteners from China, including hex bolts, socket screws, small screws and washers, is 85%.

Products involved are covered by 10 CN tariff codes, including woodscrews, drywall screws, self tapping screws, machine screws, various other small screws, mild steel and high tensile hex bolts and screws, socket screws, bolts with other heads, spring and flat washers.

In the wake of the EU tariffs, fastener exports from China have plunged. During the first four months of 2009 China fastener exports dropped 45% to 440,000 tons, with the value dipping 37% to US$729.9 million. ©2009 GlobalFastenerNews.com

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