11/20/2009
NEWS BRIEFS
Darling at Pac-West Conference: Tariffs Won’t Stop Imports
More than a year before Nucor Fastener filed petitions accusing China and Taiwan of dumping standard fasteners in the U.S. market, Vulcan Threaded Products filed a claim against threaded steel rod from China, Bruce Darling of Porteous Fastener Co. reminded attendees of a conference sponsored by the Pacific-West Fastener Association.
Vulcan’s claim eventually led to the U.S. Commerce Department announce antidumping tariffs after concluding that exporters/producers from China had sold steel threaded rod in the U.S. at 55.16% to 206% below normal value, Darling told fastener industry colleagues at Pac-West’s “Effects of the Recession on Global Fastener Markets” session held during the National Industrial Fastener Show/West in Las Vegas.
But importers have simply found new threaded rod suppliers in Dubai, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.
“These antidumping actions won’t stop imports,” Darling stated.
The same thing happened when the European Union imposed tariffs on fastener imports from China, prompting European importers to shift their business to Taiwan, according to Darling.
The Nucor petitions sent shock waves through the fastener industry.
“It was very much a wake-up call,” Darling noted.
While the ITC has terminated its investigation into Nucor Fastener’s claims against imports from China and Taiwan, fastener producers in both countries say U.S. fastener tariffs would “substantially” affect their operations.
Asian suppliers have reacted to the global downturn in fastener demand by laying off as much as half of their workforce while implementing furloughs and shorter weeks to manage costs.
“They see 2010 as being better than 2009, but marginally so,” Darling explained. “Expansion into new markets will be a priority, but most are counting on the U.S. market to rebound to allow for a profitable year.”
For the full story, including comments by Tim Roberto of Star Stainless and former Textron Fastening Systems executive Mark Udell, watch for the upcoming issue of FIN. ©2009 GlobalFastenerNews.com
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