Fasteners - hdgasa

Fasteners
Hot dip galvanizers hit by imports
The importation of fasteners has
escalated over the last two decades on
an exponential level. Whereas in 1994
total imports of bolts (including set
screws) and nuts was a mere 1 400
tons, by 1998 this had escalated to
9 400 tons and in 2012 this was 30 800
tons of which 95% was from Asian low
cost producers. The increase in imports
from Asian countries of some 14 000
tons over the last twenty years can be
closely correlated to the decline in
steel despatches from steel producers.
It is not true that only the fastener
manufacturers have been affected. Hot
dip galvanizers and electro platers have
all seen their volumes drop as a result
of the influx of imports.
Whilst some rationalisation of the
fastener industry took place with the
merger of National Bolts and CBC
Fastener in 2000, there have
nevertheless been further victims along
the way. This includes fastener
manufacturers disinvesting (Nedscroef)
and also partial closures. In speaking to
galvanizers, they have also been
affected and had to engage in
retrenchments, closures of lines and
increased mechanisation. In the context
of South Africa’s high unemployment,
the need to protect our market is
paramount, particularly where unfair
trade practices are involved.
The road of protecting our South
African market commenced in the late
90’s. Initially the success was in getting
a dumping duty on nuts and bolts
against China. However importers were
innovative in circumventing the duty
on bolts by excluding set screws (fully
threaded bolts). It was only from 2011
that separate tariff headings were
established for bolts and set screws as
well as including stainless steel
fasteners under new tariff headings. All
this gave greater visibility as what
exactly was taking place and as a result
a dumping duty of 73% was obtained
on set screws against China from
November 2012. Unfortunately four
Chinese exporters were excluded from
this duty on the basis of negative
dumping being demonstrated up to
21%. This is difficult to believe because
the disparity between a positive duty of
73% to a negative dumping duty of 21%
is just too great to be plausible on a
virtual commodity priced product. This
same anomaly seems to have also
taken place in the threaded rod
industry where in spite of injury being
proven, negative dumping was
established negating protection sorely
required.
In the meantime switching of imports
from China to other Asian countries
already commenced on bolts and nuts
in the 2002 and this trend has been
observed now on set screws.
Circumvention has also been
highlighted by imports being re directed
through other countries. The most
blatant of this is the importation of 73
tons of set screws through Singapore at
an average of R7 032/ton immediately
after the set screw dumping duty was
imposed. Singapore does not have
manufacturing facilities for fasteners,
had not exported any fasteners to South
Africa in the preceding 15 months and
further, at R7 032/ton, this is barely the
price of steel so this is also a case of
gross under invoicing.
Where to from now? Job preservation
in manufacturing South Africa is a high
priority. The retention of a viable
fastener manufacturing industry is
essential together with the associated
downstream value add activities. Hot
dip galvanizers and electro platers are
collectively in support of South African
fastening manufacturers in making
another concerted push to defend the
industry. Watch this space.
Rob Pietersma-Chairman, The South African
Fastener Manufacturers Association.
8 Hot Dip Galvanizing Today Volume 10 Issue 2 2013