Global Fastener News

China Starts EU Fastener Antidumping Probe

Jason Sandefur

China’s Ministry of Commerce has initiated an antidumping investigation into carbon steel fasteners imported from the European Union.

An application for a probe was filed on December 1 by the fastener branch of the China General Machine Components Industry Association (CMCA) on behalf of Chinese fastener producers, Xinhua News Agency reports.

The move follows the European Committee vote in early December to adopt import duties of up to 87% on screws and bolts from China. The vote must be approved by the 27-country bloc’s trade ministers before the duties are enacted.

China had offered to impose stricter pricing on its steel fasteners in an attempt to avert the tariffs, a proposal EU officials rejected.

The EU decision applies to about 200 Chinese companies who collectively exported more than $800 million worth of fasteners to the EU in 2007. EU trade experts claim Chinese exporters get an unfair advantage because of suspected subsidies in China’s steel industry.

However, Chinese exporters rebuffed that claim, noting profitability for European manufacturers increased 110% between 2003 and 2007. EU fastener exports to China totaled $180 million from September 2006 to October 2007, according to trade officials in China.

“Most EU-exported fasteners were used on high-end products such as vehicles and electrical appliances, while a large increase in supply and price cuts by the EU producers had squeezed China-made fasteners and forced them to low-end markets,” Xinhua reports.

The Chinese fastener probe would involve carbon steel fasteners used in automobiles, electronic and electrical equipment and machinery, according to the commerce ministry.

While the investigation would normally be concluded in 12 months, the ministry warned that the probe could last until June 29, 2010. �2008/9 FastenerNews.com