Recently, two Russian enterprises are planning to call for the Russian government to impose anti-dumpling measures on Chinese fasteners. At the same time, two hardware companies also ask for a protective investigation against fasteners exported from China.


Fasteners are essential parts of the industrial components, but the lift of the duties between 63% and 87% will make Chinese fastener exports more and more severe because EU is China's biggest overseas fastener market, accounting for 1/3 of the total share of Chinese fastener exports.


Some experts indicated that the imposition of the high duties on Chinese fasteners would result in domino effects, for example, it might encourage America and other countries to imitate. Once these vicious effects occur, Chinese fastener industry will be highly impacted since as much as 40% of Chinese fasteners are exported to America.


Previously, the antidumping duties imposed on Chinese fasteners by EU were only 5%, compared with now between 63% and 87%. "Many of us have been forced to reduce our production by over 2/3 due to the financial crisis; now the antidumping duties imposed by the EU will make things worse. It has been threatening our survival!" Several Zhejiang companies related to this anti-dumpling case worried, "It will has detrimental effects on Chinese fastener manufacturing which is still immature when faced with the loss of market share and the increasingly fierce competition due to the European customers’ diverting attention to Taiwan market in spite of the higher cost, and also to markets of Vietnam and the like emerging countries although their fastener industries haven’t taken shape."


Confronted with restriction on export market, Chinese fastener companies also begin to take some measures to seek for development. Some companies start to improve their techniques and draw their attention to the domestic market in hope of avoiding the negative effects caused by the greatly fluctuating overseas market. Take Gem-Year Industrial Co., Ltd. for example. While actively developing various high-quality and non-standard fasteners it has received an order of 1 billion RMB of the Beijing-Shanghai high-speed railway. In addition, some companies of automotive parts in Wenzhou are about to embark on the change of their export structures by alternating the after-sales market to combing both the after-sales market and the supporting market.


"There were 10% to 15% fasteners exporting to EU market before. To avoid the high anti-dumpling duties, some Chinese companies are considering setting up plants in the third countries, and then exporting to EU. For example, some fastener companies in Ningbo are planning to build a plant in Malaysia while fastener companies in Haiyan are exploring countries like Thailand, Cambodia for investment," said Xu Deren, executive vice-president of Haiyan fastener Industrial Institute of China.


Source: Chinese Enterprise News
Translated by China Fastener Info
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