The South African International Trade Administration Commission initiated a safeguarding investigation against increased imports of hexagon head steel bolts (tariff code 73181543), Fastener + Fixing Magazine reports.

The probe follows a complaint by the South African Iron and Steel Institute on behalf of the South African Fasteners Manufacturers’ Association.  SAFMA members represent 100% of domestic fastener manufacturing, according to Fastener + Fixing.

The domestic fastener industry experienced serious injury between July 2015 and June 2019 though declining sales volumes, output, market share, capacity utilization, net profit and productivity, according to an injury analysis submitted by CBC Fasteners (Pty) Ltd, Transvaal Pressed Nuts Bolts and Rivets (Pty) Ltd, and SA Bolt Manufacturers Company (Pty) Ltd, which account for 80% of bolt production in South Africa.

The complaint cites China as leading the “confluence of events,” including:

  • Steep rate of increase in global fastener production capacity, increasing eight-fold since 1994, to support growing construction, manufacturing and infrastructure activity, particularly in emerging economies;
  • The contraction of the world economy and in particular the Chinese economy resulting in the contraction of demand for fasteners, contributing to an imbalance between capacity and demand.
  • Record export volumes by countries with excess capacity, especially China fueled by excess capacity and output;
  • Excess output, capacity and export volumes, led by China.

Interested parties must submit information within twenty days.

The South African Government has notified the WTO of the safeguarding investigation.  A full copy of the notice is available here (https://www.gov.za/sites/default/files/gcis_document/202005/43316gen272.pdf).