2/5/2010
European Tariffs Driving China to New Markets & Products

In response to Europe’s anti-dumping tariffs, China’s fastener manufacturers are finding alternative markets – including exporting to South America and Russia.

Hardware.globalsources.com reported China’s exports to Europe plummeted 70% since the tariffs ranging from 26.5% to 87% were imposed in February 2009.

With China fastener prices rising, European customers are sourcing elsewhere.

The European tariffs are encouraging other nations to consider tariffs. Mexico is conducting a probe on carbon steel nuts and Russia initiated an investigation of M6 to M30 bolts, M5 to M30 nuts and M6 to M42 washers.

Canada has started a second anti-dumping investigation – this time on carbon steel bolts, nuts and screws from China. The decision will be finalized by March 24, 2011- two months after Canada’s initial anti-dumping duty expires.

China failed in its appeal to the WTO and in negotiating with the EU.

Consequently China’s fastener suppliers “are taking a more proactive approach,” hardware.globalsources.com reported. “Bent on minimizing losses, most are gearing up to cover all their bases and at the same time seize any opportunities that may arise as the global economic recovery gathers pace.”

Ningbo Ouya-Daocheng Autoparts Industry Co. Ltd is exporting to Brazil, Asia and Russia.

Wenzhou Lyco Fastener Co. Ltd, had been exporting 80% of its product to Europe and now just 10%. Instead Wenzhou is shipping to South America, Asia and Russia.

China fastener manufacturers also are diversifying to lower tariff rate products such as automotive fasteners.

And they are looking at manufacturing in Malaysia, Indonesia or Thailand and even in Germany, hardware.globalsources.com found. ©2010 GlobalFastenerNews.com