PERSPECTIVE: EU Investigates Dumping

John Wolz

Editor”s Note: The following column by Phil Matten, editor of Fastener & Fixing Europe, is part of a news column exchange with FIN.
The current European Commission investigation into alleged dumping of stainless steel fasteners by seven Asian countries was triggered by a complaint from the European Industrial Fasteners Association on behalf of five manufacturers who collectively produce more than half of all stainless steel fasteners in Europe.
The 334-page complaint relates to 2003, when previous duties expired. The EIFA claims there was “an impressive growth of volumes imported” from China, Taiwan, Thailand and Malaysia, with imports from those countries doubling to 5,413 tons over a 12-month period. The largest increases came from China and Taiwan, which account for 65% of annual volume. Imports from Indonesia, the Philippines and Vietnam also increased substantially. In total, EIFI says, imports increased by 62.1%, which meant “the EU market share of dumping companies increased from 25.5% to 34.3%”. The complaint concludes that during 2003 import prices dropped 15.5%.
The European Fastener Distributor Association (EFDA) has formally opposed the complaint, as have several national distributor associations and individual importers. The European Commission has now selected representative companies – distributors and manufacturers – in several European states to provide in-depth business information to the investigation.
The most common objection is the inclusion of product types that are not manufactured in the EU. Robert-Jan Steegman of Nestinox in Holland commented: “The real problem is that the Commission cannot understand the market. For example, there will almost certainly be duty on M8 nuts – yet no one in Europe makes them any more.”
Luca Ferracini, sales manager for Italian stainless steel wholesalers King srl, is resigned about the outcome. “Anything that creates barriers is never good. In the end the duties will not be good for the European producers.”
W�rth returns to double-digit sales growth
The W�rth Group reported 2004 half-year sales grew 12.6% to Euro 3.1 billion. Chairman Walter Jaeger commented, “Our major investment in the salesforce in the past two years is paying off now.” Operating results improved strongly, reaching Euro 215 million, well up on the Euro 43 million achieved during the first half of 2003. In Germany the group has generated double-digit sales growth of 11.8% despite “the ongoing crisis in the construction industry.” Sales outside of Germany were Euro 1.87 billion. The W�rth Group has over 300 sales companies operating in 80 countries, and now has over 45,000 employees.
Strong sales growth at Bossard
Bossard”s eight-month interim results show May to August sales rose 19.5% and net profit tripled to Swiss Franc 5.7 million. The company reported strong sales growth in Europe and America both up 15% – while Asian sales grew 42%. Bossard is focusing on further expansion in China, with a training and investment program aimed at doubling the number of employees to 150.
Infast Group exits manufacturing
UK-based Infast Group PLC has sold one of its manufacturing subsidiaries, GKS Centrepiece Ltd, to Armstrong Fastenings Ltd. GKS reported a UK 600,000 loss in 2003. Plant, equipment and stock valued at UK 1.7 million have been transferred to Armstrong “for a nominal sum.” Infast kept the property, which Armstrong will vacate within a year. Infast has also contracted to go on buying fasteners from GKS.
In July Infast announced that it would exit from manufacturing by the end of 2004. Infast attributed a pretax loss for the first half 2004 of �5.3 million, on slightly reduced sales of �86.2 million. The group “will now focus on its core business, which is inventory management systems.”
Steel consumption outlook
The Belgium-based International Iron and Steel Institute issued its short-range outlook for steel consumption. The report says 2004 world consumption should rise nearly 8% to 950 metric tons in 2004, with 2005 consumption projected in the range 987 to 997 metric tons.
North American growth in 2005 is projected at 3%. EU consumption should increase 2.3%, with the remainder of Europe growth gaining 6.8%. China is expected to reach 263 metric tons in 2004 and grow to 290 metric tons in 2005, equating to a 17%-27% increase.
IISI expects the world economy to grow by 4.7% in 2004 and 3.4% in 2005 unless raw material prices spike. “A serious rise in the price of oil and commodities could dampen projected economic growth,” the institute noted.
Record visitors for Ferroforma
With just over 24,000 visitors over four September days, Ferroforma beat previous records and consolidated its position as Spain”s biggest hardware fair. The event was held for the first time in the new Euro $440 million Bilbao Exhibition Centre. Exhibitors numbers also increased to 1,363 as a result of the additional space available at the new six-hall venue, which allowed organisers to achieve a rational layout for a show historically renowned for being labyrinthine. Over 90% of visitors were Spanish. \ �2004 FastenerNews.com