Request for Anti-Dumping Duties European Commission
This communication is to inform you of an important and unforeseen economic development that will impact carbon steel fastener prices in Europe.
On December 21st, the European Commission (EC) announced that they had started an investigation to determine if Chinese fastener producers have been exporting products at prices below normal market value (“dumping”). The EC decided on this investigation after receiving an official claim from the European association of fastener producers (European Industrial Fastener Institute, “EIFI”).
It is expected that The European Commission will conclude the investigation by July 2021. Pending the investigation, so any time after today, the EC may impose provisional Anti-Dumping Duties (ADD). Upon concluding the investigation, the EC may also impose ADD retrospectively, going back 90 days.
The scope of the investigation is all European imports of carbon steel fasteners originating in China, with the exception of nuts, threaded rods and stud bolts. At this point it is not certain whether EC will decide to impose ADD, nor what the duty percentage(s) will be if they do. Earlier ADD investigations over the past three decades did result in ADD measures being imposed. The previous ADD measures that were in place until 2016 included duty percentages of 85%, covering a similar scope. In anticipation of possible ADD and to mitigate risk, Fabory has begun to redirect purchase orders to factories in other Asian countries where possible. This will limit our exposure to any high ADD, but it will still increase our replacement cost significantly.
Fabory will keep you informed about this ADD process and the potential consequences in the supply chain of the impacted fasteners. Fabory remains committed to offering you the products, solutions and service we are so well known for and we are looking forward to our continued collaboration.