The Advantage of Taiwan’s Fastener Export to Europe May be Eliminated

After WTO ruled that the EU’s antidumping measure against certain iron and steel fasteners originating in China of up to 85% violated WTO’s regulations, Taiwan’s advantage in its annual fastener export to the EU (worth US$1.2 billion) may face challenges. Chairman of Taiwan Industrial Fasteners Institute Anchor T. H. Chang said on Feb. 7th that if the EU does cancel the antidumping measure against Chinese fasteners, it will greatly influence Taiwanese fastener industry.

A fastener factory pointed out that before the implementation of the antidumping measure, China’s market share in Europe once climbed to 26%. However, the EU determined in Jan. 2009 that China’s certain fasteners were proved to be dumped into the EU and should be subject to the antidumping rate of up to 85%. The total sales of China’s fasteners exported to Europe once reached US$ 1 billion, but this record almost declined to zero by 2014 and almost all orders were switched to Taiwan, which later boosted the growth of Taiwanese fastener industry.

A specialist said that China, with its advantageous economic power and being unwilling to be influenced by the EU’s antidumping measure, was very active in trying to win the case in the dispute with the EU. As a result, it made its appeal to WTO and WTO did rule that the EU’s antidumping measure against China’s certain iron and steel fasteners were against its regulations and should be terminated immediately.

Taiwan is oftentimes called the “kingdom of fasteners” and its annual fastener sales are about US$ 4.2 billion (with USA taking nearly 40% of its fastener export and Europe taking about 30%). So, the ruling from WTO has drawn the attention of Taiwanese fastener industry.

Chairman Chang added, “If the EU terminates the antidumping measure against China, there will be great influence over Taiwan. As a result, China Steel Corp. (CSC) should stand out to help maintain the competitive edge of Taiwanese fastener industry. The recent prices released by CSC should also take the situations of downstream companies into account.”

Some from the industry considered, “In the short term, there won’t appear a crisis to Taiwan’s fastener export to Europe, as WTO’s current ruling cannot force the EU to take any action.

A director from a publicly traded steel plant said, “We must also pay attention to China’s next move. With the current developments in Europe including the continuous debt crises in certain EU states, refugees from the Middle East, concern over Deutsche Bank’s financial status, etc., the EU’s termination of the antidumping measure against Chinese fasteners may be used in exchange for some economic benefits.”